New VAT Rules on Food 01.04.2012

All food (except bread) will be standard rated (as a supply in the course of catering) if it is warmer than the ambient air temperature at the time it is sold- even if it is simply coooling down after having been baked or cooked, or is being kept warm to comply with food safety legislation. This will apply, for example, to pies, pasties sold in a bakers shop, or rotisserie chickens in a supermarket.


The supply of cold food will be standard rated as a supply in the course of catering if, it is intended for consumption in an area that is set aside for the consumption of food, even if that area is shared with other traders.

All sports nutrition drinks and powders for making such drinks will also be standard rated. This does not apply to meal replacement drinks for slimmers and invalids.

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