COVID-19: What is the VAT effect of changing to selling takeaway food?

If you were previously selling catered/eat in food to your customers and have now changed to selling takeaway only, different VAT rules may apply.

All hot takeway food and most drinks continue to be subject to VAT at 20%, but some cold takeaway food can be zero-rated for VAT.

This includes sandwiches and cake, and also pasties and other cooked pastry products as long as they aren’t advertised as being hot and are not kept warm after they have been cooked.

You’ll need to work how to identify the zero-rated items you sell – for example by using a different button on your till.


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