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Where Taxpayers and Advisers Meet

Vatable and non vatable cafe sales

Coffee Shop Girl
Posts:2
Joined:Fri Jun 14, 2013 12:20 am
Vatable and non vatable cafe sales

Postby Coffee Shop Girl » Fri Jun 14, 2013 12:50 am

Hi. I own a cafe. We are VAT registered (on the flat rate scheme). We currently charge different prices on vatable and non vatable goods (ie hot drinks, hot food, eat in vatable and cold take out food non vatable). What we would like to start doing is to charge the same price for eat in or take out but still account for them as being vatable or non vatable on the till. So for example we might currently sell a sandwich for £3 eat in and £2.75 take away and the eat in option has vat built into the item on the till and the £2.75 does not. So if we now want to sell the sandwich for £3 whether its eat in or take away are we allowed to do this as long as we still account for it on the til? ie use a £3 key with vat built into the item on the till for eat in and a £3 key without vat on the till for take away? I hope that makes sense! Can anyone help please? I can't find anything about this on the HMRC website. Thanks very much in advance.

les35
Posts:635
Joined:Wed Aug 06, 2008 3:09 pm

Re: Vatable and non vatable cafe sales

Postby les35 » Fri Jun 14, 2013 11:24 am

If you are on the Flat Rate Scheme, that does not effect how you price you goods for sale.
There is nothing on the HMRC site about charging different prices for eat in and take away, and different retailers have different practices. The key is that you record each sale as it is made, so that the till total matches the cash taken.

and, do consider making a claim to HMRC for VAT potentially overpaid on your sales. There is a big case going through the Courts at the moment, which is arguing that food sold apart from in a restaurant should be zero rated in any case. Whilst the outcome is not certain, it is worth putting in a claim. Some food outlets are missing out by not doing this. (PM me if you was more info)

Coffee Shop Girl
Posts:2
Joined:Fri Jun 14, 2013 12:20 am

Re: Vatable and non vatable cafe sales

Postby Coffee Shop Girl » Sun Aug 04, 2013 9:34 am

Thank you for your reply les35
and, do consider making a claim to HMRC for VAT potentially overpaid on your sales. There is a big case going through the Courts at the moment, which is arguing that food sold apart from in a restaurant should be zero rated in any case. Whilst the outcome is not certain, it is worth putting in a claim. Some food outlets are missing out by not doing this. (PM me if you was more info)


and yes I will PM you for more info on this.

Generix
Posts:2532
Joined:Wed Aug 06, 2008 3:41 pm

Re: Vatable and non vatable cafe sales

Postby Generix » Mon Aug 05, 2013 9:14 am

If you are on the Flat Rate Scheme, that does not effect how you price you goods for sale.
There is nothing on the HMRC site about charging different prices for eat in and take away, and different retailers have different practices. The key is that you record each sale as it is made, so that the till total matches the cash taken.

and, do consider making a claim to HMRC for VAT potentially overpaid on your sales. There is a big case going through the Courts at the moment, which is arguing that food sold apart from in a restaurant should be zero rated in any case. Whilst the outcome is not certain, it is worth putting in a claim. Some food outlets are missing out by not doing this. (PM me if you was more info)
Les is right - also, have you checked to see if the flat rate scheme is giving you a better result then a retail scheme or normal accounting? (Likely unless you have high % of t/a cold food or large SR overheads - thought I would mention it though).
Do you adore to transfer your artistic and inventive qualities to renovate a part type? Perhaps your friends who tour your sanctuary head remarks about want they could levy you to change their premises.


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