Food – What’s hot and what’s not?

Further to my article on the recent Eat case I have had a number of queries on what “hot” food can be zero rated. So, as a brief overview of the current position a quick look at types of food:

Pasties, sausage rolls, pies or other pastries

• If they are hot and straight from the oven: Although the pasty is hot, it is not being kept warm, so therefore there is no VAT
• Left to cool to room temperature: The pasty is not being kept warm, so no VAT is chargeable.
• Kept hot in a cabinet, on a hot plate or under a heat lamp: The pasty is being kept warm so VAT is due

Sandwiches

• Cold food is zero-rated for tax purposes so no VAT.
• Heated for a customer – standard rated per the Eat case.

Bread

• Freshly baked, cooling or cold – the bread is not kept warm, even though it may be straight from the oven, so would be VAT free.

Rotisserie chicken

• If hot from the spit; VAT on takeaway food intended to be served hot is VATable.
• Kept hot in a cabinet, on a hot plate or under a heat lamp – As the food is kept hot and served hot, VAT is applicable.
• Left to cool to room temperature – If the chicken is cooked then left to cool, such as in bags in a supermarket, it will be VAT free.

Takeaways

• such as fish and chips: VAT remains on all takeaway food served hot.

Catering

• All supplies of catering is subject to VAT regardless of what food and drink is being provided. This includes all restaurants and cafés.

This is a general guide and, as case law shows, there will always be products on the “borderline”.