Hanley

We have quite a large canteen at work where you can eat sit down meals or sandwiches.

When you take a sandwich to the till they ask you if you're taking it out of the canteen, e.g. to your desk, cause if you are the sandwich is VAT free so 15% comes off the price, seems fair.

Now, the other day I saw they were selling a few of yesterdays sandwiches which were still in date at a discounted price of 75p (normally 1.30) so I thought I'd grab a couple.

I went to the till and advised the lady that I'd be taking them out of the canteen but she refused to take the VAT off.

Her reason was because we're selling them cheap so you simply pay the marked up price, now I'm no tax expert but surely that 75p still includes VAT at 15%, I tried to quizz her about it but just got the usual load of grunts.

I know it only adds up to a few pence but the principle of the whole thing pi55ed me off, I intend to take this up with the cafeteria management but what I need to establish first is whether this process of taking off the VAT when you eat offsite is voluntary or a tax rule.

If anyone can give any info on this I'd appreciate it.

stilover

Make up your own Sandwiches on a morning and take them into work.

That's not only sticking 2 fingers up at your employers, but also the old bag at the till.

or











Stop being a big girls blouse, and just pay the few extra pence.

john_s

iTrader: (1)

According to HMRC notice 709/1, VAT is chargeable on hot take away food, but cold takeaway food is zero-rated.

Spooky Mulder

And if the food is taken away, as the OP states then VAT is not charged.

That is not his question.

Hanley

Cheers John

So based on that rule then my cold egg mayo sandwich, even though it was yesterdays and was being sold at a discounted price of 75p, should still be free of VAT and should have been 15% cheaper - 64p.

I've e-mailed the catering manager to ask for verification on their rules, I was very careful with my wording and simply asked him if cold sandwiches sold to be consumed off the premises are sold VAT free at 15% off the 'marked price'.

I'll await his response.

john_s

iTrader: (1)

No?

I summarised the tax rule and referenced the document where the OP could find further information from an authoritative source.

I hope that went some way towards answering the question.

Gordo

Surely you should also be pointing out that they shouldn't be charging VAT on the cold sandwiches that you stay in the canteen to eat, as well ?

Hanley

I think the cold food is only VAT free if consumed off the premises.

dpb

What if they were to put them in teh microwave for 20 seconds