Catering, takeaway food
As announced at budget 2021, the government will be legislating to:
• extend the temporary reduced rate of VAT of 5% until 30 September 2021
• prepare for a new rate of 12.5% from 1 October 2021 to 31 March 2022
The supplies to which the temporary reduced rates will apply remain the same.
This notice cancels and replaces Notice 709/1 (October 2013) and provides guidance on the introduction of the temporary 5% reduced rate of VAT that will apply between 15 July 2020 and 31 March 2021 in relation to certain supplies that are currently taxable at the standard rate of VAT.
1 Catering and take-away food
1.1 Information in this notice
Although the supply of most food and drink of a kind used for human consumption is zero-rated, there are exceptions. Some items are always standard rated and these are explained in Notice 701/14 “Food”. Other supplies are standard-rated or, between 15 July 2020 and 31 March 2021 reduced rated, because they're made in the course of catering. This notice will help you decide the liability of your supplies.
This notice has been updated to reflect legislative changes that temporarily introduce a 5% reduced rate on supplies of:
• hot and cold food for consumption on the premises on which they are supplied
• hot and cold non-alcoholic beverages for consumption on the premises on which they are supplied
• hot takeaway food for consumption off the premises on which they are supplied
• hot takeaway non-alcoholic beverages for consumption