I know that the income received from a vending machine used by staff is to be included in a vat return. the coffee we buy for the vending machine is zero rated though.
so if we get say £200 income from that vending machine, do we need to account for vat when selling the coffee to staff?
Coffee from a vending machine is held to be standard rated.
There is a legal development, whereby this ruling is being challenged. This is because such sales are not 'supplies in the course of catering' which is the wording in the legislation. A key case is due to be heard next July.