VAT on takeaway food

[LatteLady]

Am I the only one to get annoyed when stores charge VAT on cold takeaway food? I am about to have a hissy fit at my local Bagel Bar if they do it to me again!

I pay the same at McDonalds for eat in or Takeaway.

YABU

Its a luxury item - whether hot or cold.

and wtf throw a hissy fit at the bagel bar? Its not them that makes the decision what to charge VAT on

The point is that VAT is only payable on hot food not cold. That is why I am miffed.

It is their decision, they shouldn't charge VAT on cold food which is eaten off the premises. VAT should only be charged on hot takeaway (eg McDonalds) or eat in (both hot and cold).

Here is a link to the VAT regulations on takeaway food (more info than you could possibly want!). Last updated in 2007, I think.

Press reporting from March 2010 indicated that the Labour administration was considering extending VAT to all groceries (one oftheir ideas for defect reduction). Does anyone know if that brainwave has gone away?

Taxes shmaxes, someone has to pay them, why not those who can't be bothered to cook?

I didn't think the problem was with paying VAT on VAT-liable take-away food; but rather with nonreduction being made for VAT-exempt items.

That said, a business can charge what it likes, so there isn't much you can do except take your business elsewhere (after explaining to the first shop why they've lost you as a customer).

Bear in mind that many small food businesses are on a flat rate scheme, where they pay VAT on all items, at a reduced rate.

Unless the bagel bar advertises its prices ex VAT I can't see what your problem is as the price you pay should be the same.

That is very interesting re the cold/hot food

I went to the local chinese at the weekend and ordered chips and a prawn salad. Should I go back and demand a refund on the salad? they have a sign up saying 2.5% will be added to all orders (I think they mean that they will take 1.7% off first!)

To those saying the business can charge what it likes. What do you think of the chinese? They are still using old menu's with old prices and have signs up saying 2.5% will be added to all orders for vat?

Sorry for a third post but I didn't make it clear that this is takeaway

Hi, I believe it depends on what they are doing, is it pre packed? If the sandwich bar buy in bagels/fillings/salad and make up the sandwich, whether it's hot or cold you pay vat as they are 'providing a service' by making it for you, if you were buying the raw ingredients and making it yourself or buying a completely untouched by the shop, pre packed sanwich then you don't pay vat.
I am in this business and unfortunately it's very frustrating, we buy coffee beans VAT free, then by grinding it we become liable to pay vat on it, but can't claim any back, we have been challenged on it many times and have taken lots of advice.
Horrid vat man!

mmsmum, the chinese is the same, and the salad I believe, as they are preparing it for you

Thanks Fizzy, I thought that them making it for me would be adding value and therefore subject to value added tax

This stuff really should be taught in schools, it's shocking how little people about their rights and the law. I know I wish I knew more