VAT confusion

Discussion in 'Cashflow forum' started by nikiniki9doors, Jun 13, 2014.

Thread Status:
Not open for further replies.
  1. nikiniki9doors

    nikiniki9doors UKBF Newcomer Free Member

    4 0
    Right so first off .. thank you to whomever takes the time to help me understand VAT. I really appreciated. Honestly.

    So I am going to be opening a juice bar at the end of the month and the ONLY thing I am actually making on site is the juice. However, because they are cold pressed - they are bottled and in a chilled fridge not made in front of you - ready made. My understanding is regardless of whether eat in or eat out they are Standard Rated VAT. Correct?

    Where I am not so clear is on the rest of my goods.

    I have seating in the cafe but not much and there is no table service its bring foods to counter - think Pret - so my questions are:

    1. Chilled ready meals from brands like SAF, Laura's idea: what is the VAT if take out/eat in
    2. Baked goods from an outside bakery - not heated - vegan and some gluten free - What is VAT take out/eat in
    3. Snacks such as vegetable crisps, gluten free snack bars, raw chocolate bars (dark) - what is VAT take out/eat in
    4. Tea (hot) - VAT take out/eat in?

    Thanks so much for answering!!
     
    Posted: Jun 13, 2014 By: nikiniki9doors Member since: Jun 13, 2014
    #1
  2. Scalloway

    Scalloway UKBF Legend Free Member

    15,406 3,258
    Posted: Jun 13, 2014 By: Scalloway Member since: Jun 6, 2010
    #2
  3. nikiniki9doors

    nikiniki9doors UKBF Newcomer Free Member

    4 0
    Hi I read it .. I didn't really understand it - i feel like the exceptions weren't clear enough. ie. course of catering and premise. Like I said only thing I actually make on site is the juices and cup of tea - everything else is ready made/packaged
     
    Posted: Jun 13, 2014 By: nikiniki9doors Member since: Jun 13, 2014
    #3
  4. nikiniki9doors

    nikiniki9doors UKBF Newcomer Free Member

    4 0
    Also, are the juices zero rated if taken away because they are fresh made on site?
     
    Posted: Jun 13, 2014 By: nikiniki9doors Member since: Jun 13, 2014
    #4
  5. Scalloway

    Scalloway UKBF Legend Free Member

    15,406 3,258
    Posted: Jun 13, 2014 By: Scalloway Member since: Jun 6, 2010
    #5
  6. Scalloway

    Scalloway UKBF Legend Free Member

    15,406 3,258
    Posted: Jun 13, 2014 By: Scalloway Member since: Jun 6, 2010
    #6
  7. WAHaccounting

    WAHaccounting UKBF Newcomer Free Member

    10 1
    That's correct. Beverages will be Standard Rated.
    Ready meals can most likely be zero rated if for take out as long as they are not served warmed up. Eat in it will be considered as catering and therefore standard rated.
    As above. I suspect most of these would qualify as food and be zero rated for take out. Eat in would be considered catering and therefore standard rated.
    Raw Chocolate bars will be standard rated as confectionery. The gluten free snack bars are also likely to be considered confectionery and therefore standard rated. The vegetable crisps can be zero rated as long as they are not made from any potato products, provided they are sold to take away.
    Hot tea is considered catering regardless of whether its eat in or take out and therefore standard rated.

    Basically, anything for eat in is considered catering and standard rated.
    VAT Notice 701/9 has a lot more information about catering. Also don't be afraid to give the HMRC helpline a ring and just ask them.
     
    Posted: Jun 17, 2018 By: WAHaccounting Member since: Jun 8, 2018
    #7
  8. Mr D

    Mr D UKBF Legend Free Member

    17,710 2,019
    Hopefully the OP figured it out 4 years ago.
     
    Posted: Jun 17, 2018 By: Mr D Member since: Feb 12, 2017
    #8
  9. WAHaccounting

    WAHaccounting UKBF Newcomer Free Member

    10 1
    Oops, completely misread the date on that post. Hopefully, he has. But its posted now so might be useful to someone else going forward.
     
    Posted: Jun 17, 2018 By: WAHaccounting Member since: Jun 8, 2018
    #9
Thread Status:
Not open for further replies.