HMRC rules out hot food VAT bonanza
Fast food retailers received a setback when the taxman said a recent EU tax tribunal ruling would not apply in the UK.
A GERMAN SAUSAGE SELLER, Manfred Bog, won a European Court of Justice hearing that extended VAT reductions to the supply of hot food.
Advisers had suggested the decision could open up the HM Revenue & Customs to thousands of VAT refund claims.
However, HMRC said the EU rules provide local jurisdictions to create exceptions. Because the UK has already legislated to exclude hot food from the EU VAT exemption, the latest tribunal ruling will not effect the UK.