My client operates a food kiosk in a well-known shopping mall. It sells a mix of hot and cold food items in the food court area. Should its sales of cold food be zero rated for VAT purposes?
If the relevant supplies are ‘supplies in the course of catering’ they will be subject to the standard rate of VAT. The starting point in determining this is to review the supplies within the scope of the exception from zero rating in VATA 1994 Sch 8 Part 2 Group 1. In particular it is important to consider whether the supplies meet the condition in Note 3(a) which excludes from the zero rating any food supplied ‘for consumption on the premises on which it is supplied’.
The legislation is...
