Liability ― food and catering

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note examines the liability of supplies of food and catering.

For an overview of the concept of VAT liability generally, see the Liability ― overview guidance note.

For in-depth commentary on the legislation and case law on supplies of food and catering, see De Voil Indirect Tax Service V4.217–V4.225.

Liability of food ― the basics

When considering the liability of supplies of food, the starting point is that there is a broad zero rate for all food.

However, this broad zero-rating for food is subject to a number of important exceptions. These exceptions are taken out of the scope of zero-rating and therefore will generally be standard-rated.

The exceptions can be conveniently divided into the following categories:

•
catering
•
ice cream and other frozen products
•
confectionery
•
alcoholic and other drinks
•
savoury snacks
•
pet food
•
home brew kits

As well as the liability of food supplied in isolation, questions frequently arise over single and multiple / mixed supplies. Commonly, these questions arise where businesses supply

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