Liability ― food and catering

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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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