Clarification issued by the UK Government confirms that takeaway food will be included in the temporary VAT reduction announced on 8th July 2020.
The temporary 5% rate will apply between 15th July 2020 and 12th January 2021, in relation to food that is currently subject to standard VAT, produced ‘in the course of catering’. This includes:
- hot and cold food for consumption on the premises on which they are supplied
- hot and cold non-alcoholic beverages for consumption on the premises on which they are supplied
- hot takeaway food for consumption off the premises on which they are supplied
- hot takeaway non-alcoholic beverages for consumption off the premises on which they are supplied
The VAT reduction does not apply to alcoholic drinks, or to food that is not produced in the course of catering, including:
- retail supplies of cold takeaway food
- retail supplies of groceries
- supplies of food that require significant further preparation by the customer
The Gov.UK website contains further information about standard-rated and zero-rated food, as well as further details about the temporary VAT reduction.
Important Links
For more information regarding temporary VAT reduction for food businesses, click here
For more information regarding VAT rating for food businesses, click here
For more information regarding the NHS Test and Trace scheme, click here
For more information from the Government about the role of your business in Test and Trace, click here
For more information from the ICO about keeping Test and Trace data safe, click here
Guidance for food businesses on coronavirus (COVID-19)
Reopening and adapting your food business during COVID-19
Food Hygiene and Health & Safety courses offered by the Safer Food Group
