Value Added Tax

Food ― single and multiple supplies

Produced by Tolley
  • 22 Dec 2021 18:45

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Food ― single and multiple supplies
  • Mixtures and assortments of food
  • Packaging of food
  • Catering in schools, colleges, hospitals, etc

Food ― single and multiple supplies

This guidance note explores how issues around single and multiple supplies apply in the specific context of the zero-rating for food. In particular, it covers:

  1. mixtures and assortments of food

  2. packaging of food

  3. catering in schools, colleges, hospitals, etc

For an overview of the scope of zero-rating for food in VATA 1994, Sch 8, Group 1, see the Food ― overview of zero-rating guidance note, and for guidance on single and multiple supplies more broadly, see the Single or multiple supplies ― application of Card Protection Plan and Levob Verzekeringen guidance note.

For more in-depth commentary on the legislation and case law surrounding the zero-rating for food, see De Voil Indirect Tax Service V4.218, and for single and multiple supplies, see De Voil Indirect Tax Service V3.105–V3.106.

Mixtures and assortments of food

Mixtures and assortments that contain both standard-rated and zero-rated items are usually treated by HMRC as mixed supplies for VAT purposes. Therefore, it will usually be necessary to apportion the payment between the standard-rated and zero-rated elements. For apportioning output tax, see the Multiple supplies ― output tax apportionment guidance note.

However, as an exception to this need to apportion, HMRC applies a concession which says that certain products containing only small quantities of standard-rated items may be treated as a single zero-rated

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