VAT for Public Houses?

Lawbag_2

I need some advice on VAT for a public house (pub).

Most of the goods they buy for sale are either food stock (0% vat) or wet stock (17.5% vat). Other consumables and items for the pub are bought at 17.5% too.

The only types of product sold are food and alcohol/drink. What vat rate is charged on sales, and how much can be claimed back/paid to HMCE?

Sorry if this sounds a little short, but I can expand on this if required.

Thanks.

This is the first time I have looked at a set of a public house accounts and had to deal with their vat - so Im kinda rusty, and the HMCE website and publications arent helpful.

WHA

I would imagine all their sales (wet and dry) are standard rated. Presumably the foods are snacks etc - automatically standard rated, and food for consumption on the premises, (i.e. catering) also automatically standard rated. Only if food was being sold for home use, i.e. selling a pint of milk or bag of potatoes to take home, would they be zero rated. So, basically, 17.5/117.5 of all sales income is output vat to be paid over, from which you can deduct all the input vat charged on the purchases and expenses, so you have to pay over the net balance every quarter.

A few other pecularities - output vat is also due on anything taken by the proprietors, i.e. drinks, fags, etc., and will be restricted on "dual" expenses if they live above - i.e. only the proportion of costs relating to the pub itself is recoverable input vat.

Also, things like the gaming machines, juke box, pool table, vending machines are also complicated - it depends on the terms of the rental whether it is the publican who is liable for output vat on the entire takings, or whether it is shared between the machine owner and the pub. Usually, it is clear from the machine supplier documentation/terms&conditions/invoices who is liable for vat.

Althogether, pubs are quite complicated when it comes to VAT, so tread very carefully.