VAT on food from Cash and Carry

[promdressers]

Asking for a friend

Seriously, I am about to stick my nose into someone elses affairs, and need to clarify something.

I understand VAT, re hot food and eat in / take aways etc. but this is a specific query.

When one is VAT registered, and runs a cafe and purchases raw materials from a Cash and Carry, how do the C&C treat VAT?. That is to say, do they charge standard rate on everything, or zero rate on, say, cake (which is, of course, zero rated as a take away). Another way to ask is, is ZERO rate only applied to the retail customer, or through the supply chain.?

Would the answer apply to any wholesaler - eg butcher or baker.

Thanks

 

[Mr D]

Rate is applied to each item. For instance buy a 5kg pack of chicken fillets, zero VAT. Buy a 6 pack of Fanta pop the VAT is 20%.
Should apply to any wholesaler - the stuff that has VAT due gets charged, not stuff that doesn't.

When you get your receipt check it - you will see what has had VAT charged.

 

[promdressers]

Rate is applied to each item. For instance buy a 5kg pack of chicken fillets, zero VAT. Buy a 6 pack of Fanta pop the VAT is 20%.
Should apply to any wholesaler - the stuff that has VAT due gets charged, not stuff that doesn't.

When you get your receipt check it - you will see what has had VAT charged.

So the Rate charged is that applicable to the condition and category of the food as well as the status of the outlet, irrespective of their position in the supply chain? I thought that may be the case, but wanted confirmation.

Thanks

 

[Opinion87]

Yes, as long as they are VAT registered. The VAT portion isn't yours, or theirs; it's being collected on behalf of HMRC.

 

[Scalloway]

Food sold in a catering establishment is standard rated.

Apart from that almost all food for human consumption is zero rated. HMRC guidance is here.

https://www.gov.uk/guidance/food-products-and-vat-notice-70114#general-vat-liability-rules

 

[promdressers]

As I said - I understand VAT, having been registered in a different environment fo 20 years. I had a secific query (to confirm what I thought I knew) about how C&C's treat VAT on their sales.
Thanks all, anyway