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VAT What does and doesnt have VAT on it?

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Comments

  • AnnieO1234
    AnnieO1234 Posts: 1,722 Forumite
    If you look at the hmrc link I posted it also details the complex issue of linked transactions, so with such things as meal deals it could be that most of it is zero rated, but providing the additional say chocolate biscuit which is standard rate forms part of the meal to less than £1 value you don't have to charge vat on it. Presumably some businesses won't take that risk while others will.
  • JCS1
    JCS1 Posts: 5,344 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    There's also the added complication of cold food take out ruling on meal deals - if in doubt, don't claim back the VAT.
  • There are few businesses where you can offset the VAT on purchases for food against the income charged to customer on their invoices unless you're a catering business. Subsistence or entertaining don't allow for you to offset the VAT and buying a meal deal thingy is unlikely to be a legitimate business expense unless every single employee enjoys the same privilege.

    Monkey about with VAT at your peril!
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