VAT What does and doesnt have VAT on it?

jill36_2

Tesco and Boots have 'meal deals'. Some supermarkets have **** against the item but not the supermarkets mentioned above.

How do I extract the VAT.

Thanks

Jinx

I'm not quite sure if I am understanding you correctly - not all foodstuffs carry VAT (no expert, someone can correct me)

To actually calculate the VAT on any given item, you divide the full price by 1.2 which gives you the net price excluding VAT then you multiply your net by 20% to show the VAT (or deduct the net from the full value, the VAT is the difference)

v8monkeyboy

To calculate the VAT amount on anything, divide by 6, then deduct the result from the original total.

Food doesn't have VAT added in this country though?

Bantex_2

Just look at the receipt.

AnnieO1234

There are different rates as different food items vary from 0% to 20%.

It dates back in some cases to archaic definitions of necessities versus luxury items, it can be frustrating in some cases. Google the Jaffa cake issue which was resolved only by proving it was a cake not a biscuit.

There are listings on hmrc website with definitions but their overview is:

Food and drink for human consumption is, in general, zero-rated but many items are standard-rated, including alcoholic drinks, confectionery, crisps and savoury snacks, hot food, sports drinks, supplies of food made in the course of catering including hot takeaways, ice cream, soft drinks and mineral water.
Because certain food and drink is zero-rated, so too are certain animals and animal feeds, and plants and seeds - if the animal or plant in question produces food that is normally used for human consumption.
Xxx

seabright

Jaffa cakes & VAT: VAT is payable on chocolate covered biscuits (because they are deemed a luxury) but not on chocolate covered cakes (presumably they are a necessity).

So, McVitie's needed to prove that Jaffa Cakes were a cake, not a biscuit, as HMRC said they were a biscuit.

It was held that calling something a cake (as in Jaffa Cake) was not enough.

So, the biscuit/cake rule was made:
1. When a cake goes stale, it gets hard
2. When a biscuit goes stale, it gets soft

Therefore, Jaffa Cakes are cakes, and not liable to VAT.

maman

Not sure why you want to deduct the VAT?


I'm guessing on the meal deals that there's VAT on maybe the puddings and chocolates but not the mains and starters.

BitterAndTwisted

There are few conditions where you can claim VAT on restaurant meals bought for a business, so claim VAT on food items at your peril as it's complex. Where in doubt, don't do it.

Icey77

Study your receipt, if any items had VAT on them they will be marked and the amounts broken down.

DigForVictory

Sad to say, if it has chocolate on/in it, odds high it has VAT...
Raw ingredients should be zero rated but just bottling water makes it "value added".

To extract the vat from a 'meal deal', study the receipt - it's what the VAT officer will do!

All the best with your VAT Return!

madnotstupid

If you mean the meal deals with a sandwich, crisps and a drink, I imagine the sandwich or salad has no VAT - the crisps and drink have it. so maybe you'd have to calculate the percentage of the overall deal that has vat charged?


I'm pretty sure jaffa cakes are a necessity . . .