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Post Info TOPIC: Help with VAT Registration
ricky


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Help with VAT Registration
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Hi, I am currently filling in a VAT 1 form as my company is nearing the VAT Limit.

 

My Business is an Indoor karting track that also has a café.

 

Question 20 Do you expect to make any exempt supplies, please could someone offer advice on whether this would apply to me, as I supply food (Burger & Chips etc) would this be exempt from VAT at all?

 

Ive read the VAT notes on the HMRC website where it states that Food & Drink is Zero rated does this mean I dont have to charge VAT on the goods I sell from the Café? If this is correct does this mean I cant claim the VAT on the purchases I buy for the café?

 

 

Any advice would be welcome, Thanks



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Peasie


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 Deleted - to avoid confusion.

 



-- Edited by Peasie on Monday 6th of September 2010 05:25:36 PM

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AngelaWBS


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Hi Ricky,

Welcome to the forum.

Food and drink is quite a complex area with regard to VAT.  So...........

...................To the best of my knowledge, it sounds like you will be supplying hot food which is vatable, along with chocolate, sweet and most crisps.  If you sell fruit and ready made sandwiches for instance then they are not vatable.  You will find that there isn't much VAT to claim back on the cold foods you purchase.

I would say you won't be making exempt supplies.

If I am wrong hopefully someone will correct me.

Regards



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attilabenko


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Hi,

Have a look at HMRC notice 709/1 about catering and take-away food.
Here is a link:

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageExcise_ShowContent&id=HMCE_CL_000160&propertyType=document#P48_2205

Hope this helps.


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Peasie


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-- Edited by Peasie on Monday 6th of September 2010 05:25:53 PM

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attilabenko


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One more thing.Once you are VAT registered you will probably have to upgrade your till/cash register depending on the setup you have now to be able to separate your sales (ie drink,food,hot or cold - vat or not) if you do takeaway, it can make your life easier later. Personally I love (not) to go through pages long purchase receipts to find the few with VAT on it ( love the cash and carry ones with everything on them) :(

-- Edited by attilabenko on Monday 6th of September 2010 05:05:29 PM

-- Edited by attilabenko on Monday 6th of September 2010 05:08:32 PM

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Attila
AngelaWBS


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Hi Attila,

Haha, I know what you mean about the cash & carry invoices - lovely........!!!!!

hmm

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BackOfficeGroup


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Please don't get confused over zero rated and exempt.

You will not be making exempt supplies, full stop. You will, however, be making zero rated supplies, as has been said wiht cold foods or milkshakes to take away and the like.

A complex area but simple once you get your head around it.

P

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attilabenko


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Very good point, Phil! I missed the little detail of the question actually asking about exempt!
Yes there can be only zero rated but no exempt!

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