VAT and food supplies

HMRC’s VAT Notice 701/14: food explains what types of foods are zero rated and standard rated for VAT. The notice includes many examples of different food categories. The notice covers some general VAT liability rules. For example, food supplied in

HMRC’s VAT Notice 701/14: food explains what types of foods are zero rated and standard rated for VAT. The notice includes many examples of different food categories. The notice covers some general VAT liability rules. For example, food supplied in the course of catering is standard rated for VAT. This includes hot take-away food. Most basic food stuffs intended for human consumption and not supplied in the course of catering are zero rated for VAT. However, the definition of 'basic' is not straightforward.

The following food and drinks must usually be standard rated:

  • Ice cream, similar products, and mixes for making them. Note that frozen yoghurt that’s designed to be thawed before being eaten is zero rated.
  • Confectionery, apart from cakes and some biscuits. Drained cherries and candied peel are zero rated.
  • Alcoholic beverages.
  • Other beverages, and preparations for making them. Exceptions that are zero rated include milk and milk drinks, tea, maté, herbal tea, coffee and cocoa, preparations of yeast, meat and egg.
  • Potato crisps roasted or salted nuts and various other savoury snack products.
  • Products for home brewing and wine making.

Produce that’s unfit for human consumption, such as waste and contaminated food products (including used cooking oil), may be eligible for zero rating as animal feeding stuffs.

Source: HM Revenue & Customs Tue, 16 Aug 2022 00:00:00 +0100

Latest INSIGHTS

Check out our latest Insights for useful accounting tips and information.

Falling inflation – what does it mean for you?

The following notes are reproduced from a Treasury statement issued 21 May 2024.

Lower inflation supports people by maintaining the purchasing power of their money.

If prices only rise slowly, people can plan their budgets more effectively –

Read More

New Brooms

As time passes during the present election campaign, its seems more likely that we may have a change of government from the 5 July.

Labour have disclosed a number of tax changes they would introduce. To summarise they are:

Private school fees

Read More

Tax Diary July/August 2024

1 July 2024 – Due date for corporation tax due for the year ended 30 September 2023.

6 July 2024 – Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A NICs.

19 July 2024 – Pay Class 1A NICs (by the 22 July

Read More