Food vendors may not be listed if they have not paid their annual food licence fee or if the business has recently opened or changed owners and has not been audited yet. The sale of these joints at this point is therefore standard-rated (or temporarily reduced rated) as Test 3 is met. You must account for VAT on supplies of catering to staff and visitors (except visiting students). 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. As they’re no longer hot at the time that they’re provided to the customer the ‘precondition’ ceases to be met and so this sale is zero-rated for VAT purposes. Examples of a meal are: Non-profit organisations don’t need a licence for these activities: selling unpackaged food that is not a meal, reheating or serving pre-prepared meals, for example, reheating frozen meals or making soup from a packet mix. Where an educational institution provides exempt education to its own pupils and students, then the supply of catering they make is also exempt. If you give meals or drinks in exchange for an identifiable benefit to your business, for example to coach drivers or to group or party organisers in return for bringing their party to your establishment, you can deduct any VAT incurred but you must account for output tax on the cost to you of these supplies. Examples of items that are clearly not intended for on premises consumption include packets of tea, packaged coffee granules, powder, beans, sugar, loaves of bread and cartons of factory sealed milk. This notice cancels and replaces Notice 709/1 (9 July 2020) and reflects the government’s announcement that the temporary 5% reduced rate for certain supplies will now apply between 15 July 2020 and 31 March 2021 (it was originally intended to end on 12 January 2021). Records, and the keeping of records are explained in VAT record keeping and Record keeping (VAT Notice 700/21). Examples of standard-rated (or temporarily reduced rated) products under this test include: This test confirms that the sale of food or drink that’s been heated to the customer’s order is standard-rated (or temporarily reduced rated). Selling pre-packaged fruit or vegetable juice. This applies whether or not the customer uses the condiments on the food. motel kitchens that are also used as a kitchen for onsite owners or managers. If you sell food to be taken away for consumption elsewhere, but you make a microwave oven available for your customers to heat up the food, either before or after the till point, you’re making a supply of hot food which must be standard-rated (or temporarily reduced rated). If you make a separate supply of catering on board an aircraft, ship, train or other means of transport, it’s standard-rated (or temporarily reduced rated) unless it’s provided for consumption during a journey to a country outside the UK. You’ll need to include the full title of this notice. Production of primary produce such as milk or meat at a butcher, with accreditation. But the retailer: As none of the tests are satisfied, the sale of the pasty is zero-rated. This page contains council specific information, Choose from the list for information relevant to your council. Obvious examples of supplies in the course of catering include: Any supply of food or drink as part of a contract for catering is standard-rated. But if it’s your normal practice to issue a single document to serve as both the tax invoice and the profit and loss account, you must clearly show the dual purpose of the document and keep the tax invoice details separate from the other information. As long as you issue a separate tax invoice for these goods or services when you charge them on to your principal, you should merely record the VAT inclusive amount in your profit and loss account. But you must account for tax on the full cost to you of any standard-rated items (such as ice cream, sweets and chocolates, crisps, soft and alcoholic drinks that you take out of your business stock for your own or your families use, see Food products (VAT Notice 701/14). Hot takeaway food and drink that meets certain tests set out below is standard-rated(or temporarily reduced rated). Whichever treatment is appropriate it applies to anything provided by way of catering. It will take only 2 minutes to fill in. In this example, test 5 is met and so the sale of the pasties is standard-rated (or temporarily reduced rated). If you want to run a stall temporarily to prepare, or handle unpackaged food, for retail sale, you will generally need a food business licence. A retailer bakes batches of fruit pies, tarts, cakes, buns and bread for sale throughout the day. If you handle or prepare unpackaged food, you generally will require a licence. It will also include any products kept warm in cooling down ovens or other appliances that slow down the rate of cooling. Planning rules will be relaxed so pubs and restaurants can operate as hot food takeaways during the coronavirus outbreak. Show your support by ordering takeaway when you can – every little bit helps. The exception is food that is either not hot at the time it’s provided to the customer or that’s hot at the time it’s provided to the customer but does not satisfy any of the tests. This means that the sale of products that have been cooked specifically to enable consumption whilst still hot (as a result of being freshly prepared, baked, cooked, reheated or kept warm) are standard-rated (or temporarily reduced rated). This notice has been updated to reflect legislative changes that temporarily introduce a 5% reduced rate on supplies of: However, any supplies of food and drink that are supplied as part of a supply of catering services for consumption off-premises remain standard rated. It is intended for all those who prepare and supply food and drink ready for consumption. ‘Advertised or marketed in a way that indicates that it is supplied hot’ does not include advertised or marketed as ‘freshly baked’. To help us improve GOV.UK, we’d like to know more about your visit today. A retailer sells hot freshly cooked chickens that have not been heated for the purposes of: But they’re provided to customers in specially designed (foil lined) bags designed to prevent leakage of fluids and grease from the chicken. Postage, delivery and direct marketing (VAT Notice 700/24), The VAT treatment of passenger transport (VAT Notice 744A), Tour Operators Margin Scheme (VAT Notice 709/5), Education and vocational training (VAT Notice 701/30), Health institutions supplies (VAT Notice 701/31), Point of Sale Retail Scheme (VAT Notice 727/3), customerexperience.indirecttaxes@hmrc.gsi.gov.uk, Hotels and holiday accommodation (VAT Notice 709/3), Coronavirus (COVID-19): guidance and support, Transparency and freedom of information releases, Restaurant (or similar café, canteen type business), The whole restaurant area, and areas with chairs and tables on the pavement, concourse or similar areas adjacent to (that is, near to or next to) the main premises, The outlet itself and any areas with chairs and tables in designated areas belonging to that outlet or provided for the exclusive use of that outlet and areas with tables and chairs in food courts shared with other food retailers, The outlet itself plus any areas containing chairs and tables outside the establishment provided for use of customers, Any seating areas within the shop and areas with chairs and tables outside the shop for use of customers, Stall in a sports stadium, amusement park, exhibition, gallery or similar pay-entry venue, The stall itself, and any facilities provided adjacent to the stall for the use of customers, The outlet and any facilities provided adjacent to the outlet for the use of customers, 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, 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 off the premises on which they are supplied, supplies made in restaurants, cafés, canteens and similar establishments (except supplies of cold takeaway food), third party supplies of catering for events and functions, such as wedding receptions, parties or conferences, a supply of cooking or preparation of food provided to a customer at the customer’s home, for example for a dinner party. However, supplies of on-premises catering (for example supplies in restaurants and similar establishments) made between 15 July 2020 and 31 March 2021 will benefit from the reduced rate with the exclusion of alcoholic beverages. For these purposes, ‘preparation’ includes: If you take sandwiches, or other items of food and drink, to buildings in order to sell them, but have no contract or agreement to do so, this is not a supply in the course of catering and you can zero rate any item that is eligible, see Food products (VAT Notice 701/14) for further details. Examples of unpackaged foods that require a licence are: fruit or vegetable juice that is processed at place of sale; cakes, muffins or biscuits with fresh cream or custard in the filling or icing; takeaway food such as hot … This includes instances where a supplier of hot takeaway food stores the food or drink in an environment which provides, applies or keeps heat, or takes other steps to ensure that it stays hot or to slow down the natural cooling process after it’s been heated. If you’re concerned about going out or suspect you may have contracted Covid-19, consult the Victorian state health department website . Hot takeaway food and drink that meets certain tests set out below is standard-rated(or temporarily reduced rated). Cold takeaway food and drink is zero-rated, as long as it’s not of a type that’s always standard-rated (such as potato crisps, sweets and some beverages including bottled water). At the end of the day, the retailer removes the joints that have not been sold from the heated cabinet. If you’re the proprietor of a restaurant, café or other catering establishment and you supply yourself or your family with meals, this is not regarded as catering and you need not account for VAT on those meals. For example, food and drink sold from canteens, refectories and other catering outlets (excluding bars), plus food and drink sold from vending machines situated in canteens and similar areas. This is includes anything in a bun, bap, baguette or other speciality bread with any hot filling such a sausage, reheated cheese and ham, pastrami. If you sell hot food with an ingredient that’s cold as a single item, the whole supply is standard-rated (or temporarily reduced rated). None of these products are baked with the intention of: The sales of all of these products are zero-rated as, even where they are hot at the time they’re provided to the customer, none of the 5 additional tests are satisfied. In other words all: If the vending machine is on a university campus and is run by the students’ union you’ll need to read paragraph 5.5. The following explains how you should treat invoices, your fee and your profit and loss account as an agent. Examples of standard-rated products under this test include: This test confirms that food or drink that is kept hot after being cooked, heated or reheated is standard-rated (or temporarily reduced rated). This is not the same as the single item of food that happens to have a cold ingredient for which one charge is made. So it’s important to know what ‘premises’ means as there’ll be times when it’s not just the outlet where your business is situated. This includes food supplied at mealtimes and break times from the refectory, canteen or other similar outlet but not items bought from a university campus shop, as they’re not provided by way of catering. Find out when you need to charge VAT and at what rate if you supply food and drink for the purposes of catering or as a takeaway. Ignore any minor items that you make no charge for, such as salt, pepper, vinegar and mustard. Larger houses in multiple occupation usually require a licence, ... can change to a use for the provision of takeaway food (Use Class A5 and/or any use for the provision of hot or cold food that has been prepared for consumers for collection or delivery to be consumed, reheated or cooked by consumers off the premises). This is the definitive guide to who’s selling what, from heat-and-serve meals to pre-mixed cocktails. The concession does not cover any other goods or services supplied by the student unions. However, if you are supplying the food or drink under a contract, for example to cater for an event, you are making a supply of catering and all your supplies will be standard-rated (unless the catering is supplied on-premises, in which case it will benefit from the temporary reduced rate). Generally speaking, businesses do not need to specifically check whether the precondition is satisfied as it’s clear whether or not the food is hot at the time they provide it to the customer. Read more about home based food business requirements. If you run your own catering outlet you’re acting as principal. A retailer sells a Cornish pasty that’s been baked off and left to cool naturally but is still hot at the time that it’s provided to a customer (and so the precondition is satisfied). If you’re still unhappy, find out how to complain to HMRC. When you need a licence. (c) Your fee for your services to your principal - you must account for VAT on the fee you charge for running the catering facilities. In practice, this will mainly affect products that are kept warm in heated cabinets (for example, under heat lamps), on spits, in hot water or on hot shelves or trays. Safety: working safely during COVID-19 is a top concern, and there are important guidelines to become familiar with. Catering in its ordinary meaning includes the supply of prepared food and drink. We also use cookies set by other sites to help us deliver content from their services. Make your own chicken kebabs for a lighter version of the takeaway favourite. The canteen owner can reclaim the VAT you charge subject to the normal rules. For example, freshly baked bread or bakery products that are incidentally hot at the time they’re sold but which are often eaten cold (that is, when they have cooled down to ambient air temperature). A retailer sells joints of beef that are kept hot in a cabinet after roasting. If you have any feedback about this notice email: customerexperience.indirecttaxes@hmrc.gsi.gov.uk. The fast food chain confirmed its golden arches will temporarily shut for takeaway following the third ... Chicken Legend with hot and spicy mayo ... To inquire about a licence … cooking bacon and eggs), preparation of food to be sold at markets. Some items are always standard-rated and these are explained in Food products (VAT Notice 701/14). Of course, the cheapest way to eat is to cook it (I hear you 'fake-away' fans), but sometimes we just want a treat. This could include pictures of the products showing steam rising from them. You cannot normally deduct input tax incurred on costs that relate to exempt supplies. A meal is food that is meant to be eaten at a table with cutlery. preparation of food for a student boarder, preparation of food for a person as part of a home support service (e.g. Some home based food businesses need to have a licence, for example: You may not be allowed to make potentially hazardous foods in your home kitchen. If you are opening a food business, you may need a food business licence. Examples of unpackaged foods that require a licence are: This is not an exhaustive list and if you still have queries about the type of product you are going to prepare and sell, contact Council. If there’s a profit that you pay to the canteen owner or you are reimbursed by them for any loss, these amounts are outside the scope of VAT. You do not need a food business licence for fruit and vegetable juice not prepared at the place of sale (e.g. If you are unhappy with HMRC’s service, contact the person or office you’ve been dealing with and they’ll try to put things right. If you need general help with this notice or have another VAT question you should phone our VAT helpline or make a VAT enquiry online. If you make a charge for delivery you should read Postage, delivery and direct marketing (VAT Notice 700/24). Although the supply of most food and drink of a kind used for human consumption is zero-rated, there are exceptions. Similarly, if you install vending machines for your employees to use free of charge and you give them tokens to operate the machine or it is operated without tokens or coins, no VAT is due on the supplies from the machine. Selling snack foods that are not potentially hazardous: biscuits and cakes (without fresh cream or custard in the filling or icing), muffins (without fresh cream or custard in the filling or icing). If you give your customers or friends free meals or drinks, this is regarded as business entertainment and you will not be entitled to deduct any input tax incurred in the provision of the meal or on the purchase of the drinks. This will apply whether the food is delivered to, or collected by, your customers. Hot takeaway drinks are standard-rated (or temporarily reduced rated as long as they are non-alcoholic). This page has been updated because the Brexit transition period has ended. You must account for VAT on both your: Although under these arrangements you run the canteen, you’re supplying the food and drink to the canteen owner and the owner supplies the food and drink to the users of the canteen. a carer preparing food at the home of a person with a disability or family day care). But it does not cover food and drink sold from campus shops, bars, tuck shops, other similar outlets and certain vending machines (see paragraph 2.4). The owner must therefore account for VAT on the supplies of catering or hot takeaway food and drink (unless they make exempt supplies as in paragraph 2.6 and paragraph 2.7). This is in contrast to products that are not intended to be eaten while hot and are sold warm simply because they happen to be freshly baked and are in the process of cooling down. Takeaway: luckily, the nature of food trucks makes offering takeaway and delivery easier. This means that you must account for VAT on any supplies of catering or hot takeaway food. You cannot normally deduct input tax incurred on costs that relate to exempt supplies. For the purposes of Group 1 of Schedule 8 of the VAT Act, ‘premises’ are the areas occupied by the food retailer or, any area set aside for the consumption of food by the food retailers’ customers, whether or not the area may also be used by the customers of other food retailers. Such supplies that are made on-premises will qualify for the temporary reduced rate. However, this excludes the supply of any alcoholic beverages the supply of which remains standard rated. If you run a hotel or similar establishment and you supply bed and board (including packed meals) at an inclusive price, you should treat the whole supply as standard-rated (or temporarily reduced rated). These are sold cold the next day or are used to make cold takeaway sandwiches. ginger juice manufactured elsewhere), but you will need to comply with. These skewer recipes are great for BBQs, picnics or even just a midweek meal. The definition of premises does not include areas with tables and chairs provided for general use by members of the public who are not customers of one or more food retailer. It will not affect products that are sold in ordinary paper bags or similar packaging. The owner must therefore account for VAT on standard-rated (or temporarily reduced rated) supplies of catering and hot takeaway food, unless it makes exempt supplies as in paragraph 2.6 and paragraph 2.7. Refer to the. Use this page to find out Brisbane City Council's requirements for market food stalls. If the supply of education is non-business, as in the case of a local authority school, free school or academy school, the supply of catering will also be non-business, as long as it’s made at or below cost. Selling the following foods when they are not potentially hazardous: crushed, puffed or toasted nuts, grains and seeds, edible oil, for example, olive oil, vegetable oil and macadamia oil, preparations for spreading on bread, for example, honey, peanut butter, hazelnut spread, Vegemite, jam and marmalade. You do not need a licence for these activities. See Education and vocational training (VAT Notice 701/30) for more information. We have added information about government legislating to extend the temporary reduced rate of VAT. This is illustrated in the following examples. syrups, for example, golden syrup, maple syrup, rice syrup, malt syrup, glucose syrup and coconut syrup. You can reclaim any VAT charged to you as input tax, subject to the normal rules. If you supply food that your customers must prepare themselves before it can be consumed, this is not a supply in the course of catering. Further information can be found in Health institutions supplies (VAT Notice 701/31) and Partial exemption (VAT Notice 706). The notice has been updated to reflect the changes announced on 8 July 2020 regarding the temporary reduced rate of VAT on certain supplies to hospitality, holiday accommodation, or charge for admission to certain types of attractions. Don’t include personal or financial information like your National Insurance number or credit card details. The sale of food and drink is standard-rated (or temporarily reduced rated) if the food and drink (or any part of it) is hot at the time that it’s provided to the customer (the precondition), and one or more of the following 5 tests are satisfied, it’s: Under ‘the precondition’ only food or drink that’s hot at the time it’s provided to the customer is standard-rated (or temporarily reduced rated). This means that you can treat your supplies as exempt when made by unions at universities, and other institutions supplying exempt education, and outside the scope of VAT when supplied at further education and sixth form colleges. This is the case whether or not you make a charge for the use of the oven. Find out more about the licensing requirements for child care and the licensing requirements for outside school hours care. The retailer in example 1 decides to advertise its pasties as ‘hot’ rather than ‘freshly baked’. Home kitchens can be used to operate a food business. But if you make the supply at a hospital, school or similar establishment, you must refer to paragraph 2.6. Further information can be found in Food products (VAT Notice 701/14). Food and drink supplied at or below cost from a tuck shop run by the school itself takes on the same liability as the education. This means that most supplies of food and drink made by the union, where the food is sold for consumption in the course of catering will be exempt (see section 2 and section 3. any other unpackaged food that is not exempt. If you cannot use the Point of Sale Scheme as outlined in Point of Sale Retail Scheme (VAT Notice 727/3), you may be eligible to use the catering adaptation detailed in Retail schemes (VAT Notice 727). (a) Invoices made out to your principal - if you buy goods or services for your principal and they’re invoiced to them, the supplier should send the invoices direct to your principal, who can reclaim the VAT subject to the normal rules.

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