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17 Mar 2011
FAST FOOD SELLERS could be eligible for huge VAT refunds thanks to a new EU ruling, claim tax advisers.
The European Court has decided German sausage seller Manfred Bog is exempt from full VAT, as preparation of the snacks is simple and does not constitute catering.
Further reading
Popcorn and nachos also come under the same category, and Chantrey Vellacott DFK suggests this could force the UK government to shell out millions to venders who have paid too much.
Peter Ladanyi, director of VAT services at the firm, said: "It seems inevitable that there will be huge claims made for VAT overcharged in the past and they will probably have to change the law."
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Never was so much time, money, brainpower and taxpayer resources wasted in such a ridiculous and futile pursuit as on questions and litigation over whether a supply is zero-rated or standard rated food, or whether it is zero-rated food or standard-rated catering.
Yet another reason to withdraw from the EU.
Posted by: roger, 18 Mar 2011 | 11:47
At long last
This result is excellent for many small business's that can't afford to take on HMRC. Large chains like Greggs and McDonalds have managed to get hot food zero rated. It's about time this was resolved in the UK. As it stands, VAT is all about the intention of heating food and not whether it is hot. This will level the playing field for many fast food opreators
Posted by: Steve, 22 Mar 2011 | 17:01