Fast food ruling takes away VAT burden

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.

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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