Questions and Answers
Is takeaway food subject to VAT?
The VAT rules surrounding food can be rather complicated, however in general the majority of hot takeaway food will be subject to the standard rate of VAT at 20%.
There are some rare circumstances where VAT may not apply to food taken away hot, but these would be uncommon for hot food prepared to order.
If you also sell any cold food for takeaway, such as deserts, then things can become more problematic. The complexity of the VAT rules means that some cold food would attract VAT but others wouldn’t. For example, a cream gateaux would not be subject to VAT, but an ice cream gateaux would.
It’s easy to make mistakes when deciding whether or not charge VAT on food, and if you are unsure then we would recommend that you speak to an accountant.
Once you have determined the VAT treatment of the items you are selling, VAT returns will be due in the normal way, however you will be able to defer any liabilities arising between 20th March and 30th June.
For our latest COVID-19 news and guidance for your business, visit our dedicated Coronavirus Hub.
We will be updating it regularly as we continue to monitor and digest all the latest information
Date published 21 May 2020 | Last updated 13 Jan 2021
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
Choose the right accounting firm for you
Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?
Local business focus
We specialise in supporting independent businesses and work with 100,000 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.
Come and meet us
We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.
Switching is simple
Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.