The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the VAT treatment of food supplied for human consumption. It should be noted that this is a contentious area of VAT law and HMRC's view on the VAT treatment of food and drink is often challenged in the courts.
It is important to note that any food supplied in the course of catering, including hot takeaway food, is always liable to VAT. If the food is not supplied in the course of catering or as hot takeaway food, the following VAT treatment should apply.
Most food items are liable to VAT at the zero-rate. However, there are a number of items of food that are liable to VAT at the standard-rate.
An item is ‘food of a kind used for human consumption’ if it meets the following criteria:
Food would include:
Food would generally not include:
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