McDonalds VAT on Milkshakes

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millermiller Forumite
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Do McDonalds still charge the different prices on milkshakes taken away vs eaten in?

I bought a medium vanilla milkshake yesterday to take out and the receipt said no VAT was charged, but the price was £1.69 which seems like the normal eat-in price.

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  • nomoneytodaynomoneytoday Forumite
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    McDonald's used to not charge VAT specifically on takeaway milk and milkshakes.
    I would imagine that they moved to a flat rate scheme rather than accounting for the number of drink ins vs outies


    (I am not a VAT inspector lol)
  • Mr_SingletonMr_Singleton Forumite
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    I would imagine that they moved to a flat rate scheme rather than accounting for the number of drink ins vs outies

    Yes the cheeky little blighters have now decided to pocket the EXTRA 20% your paying as profit.

    I suspect a huge number of McCrap transactions are declared as take-out regardless to boast the bottomline. 20% ain't to be sniffed at
  • PennywisePennywise Forumite
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    The vast majority of their sales will be VATable whether eaten in or taken out. Their trade is catering, and all catering sales are vatable - they don't qualify for food zero-rating because they're not selling raw food - they're selling hot foot, i.e. catering. In just the same way that fish & chip shop sales are VATable - if they sold raw fish and potatoes it would be zero rated food, but with them cooking it and selling it hot, it's catering, and vatable even if it's taken away.

    They may have agreed an exemption for some of their milk products - that's between them and HMRC.
  • AquamaniaAquamania Forumite
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    Pennywise wrote: »
    The vast majority of their sales will be VATable whether eaten in or taken out. Their trade is catering, and all catering sales are vatable - they don't qualify for food zero-rating because they're not selling raw food - they're selling hot foot, i.e. catering. In just the same way that fish & chip shop sales are VATable - if they sold raw fish and potatoes it would be zero rated food, but with them cooking it and selling it hot, it's catering, and vatable even if it's taken away.

    They may have agreed an exemption for some of their milk products - that's between them and HMRC.

    There is no VAT on milkshakes where they are sold to take away.
    VAT is only chargeable when the milkshake is sold to be consumed on the premesis.
    This is not a unique agreement bewteen MaccyD's and HMRC - it applies to anyone that sells milkshakes (and is VAT registered)

    You cannot compare a milkshake to fish & chips.
    Fish & chips are sold to be eaten hot.
  • PennywisePennywise Forumite
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    Aquamania wrote: »
    You cannot compare a milkshake to fish & chips.
    Fish & chips are sold to be eaten hot.

    I was responding to the poster who suggested all takeouts were VAT free which is quite a common mistake.
  • deanosdeanos Forumite
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    They stopped it years ago,
  • ohreallyohreally Forumite
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    Where's the deal?
    Don’t be a can’t, be a can.
  • edited 22 December 2016 at 6:31PM
    seatbeltnoobseatbeltnoob Forumite
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    edited 22 December 2016 at 6:31PM
    McDonald's used to not charge VAT specifically on takeaway milk and milkshakes.
    I would imagine that they moved to a flat rate scheme rather than accounting for the number of drink ins vs outies


    (I am not a VAT inspector lol)

    thats not the right application for FRS, there must have been a change in vat rules for them to change eat in vat

    For a number of reasons. FRS helps the company in simplying their VAT returns it does not affect their VAT charging. Whether a business is on FRS or standard VAT they will still invoice for VAT.

    Secondly FRS is for small businesses with turnover of less than £150,000 (last time I checked). It is not suitable for mcdonalds where a single STORE is probably doing 10x that a year. Never mind the corporation.
  • edited 22 December 2016 at 6:40PM
    seatbeltnoobseatbeltnoob Forumite
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    edited 22 December 2016 at 6:40PM
    Pennywise wrote: »
    I was responding to the poster who suggested all takeouts were VAT free which is quite a common mistake.

    Food items are mostly VAT free [zero rated] (not hot food). If you dine in at a restaurant you're not buying food you're buying catering services which is VATable.

    There may have been a change in assignment or a technicality which allowed Mcdonalds to change their criteria to allow them to do this. I have noticed that a lot of mcdonalds give your food in a paper bag whether or not you elect to dine in or not. If you request to dine in they just give you a tray with your food in the brown paper bag.

    They never ask you if you want to dine in or take out before paying. You generally have to ask for a tray after paying.

    There is so much nonsense above. So many people posting inaccurate advice. The best approach is to go to the source.

    You can read here: https://www.gov.uk/government/publications/vat-notice-70114-food/vat-notice-70114-food#general-food-products

    3.7.2 milkshake is zerorated.

    But this is overruled if you eat-in at the restaurant.

    On this page: https://www.gov.uk/government/publications/vat-notice-7091-catering-and-take-away-food/vat-notice-7091-catering-and-take-away-food#hot-take-away-food-and-drink

    3.1. You must always charge VAT at the standard rate if you make a supply of food and drink for consumption on the premises on which it is supplied - see also section 1
  • JCS1JCS1 Forumite
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    It would come under the cold food takeaway VAT ruling.
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