Monday, July 11

VAT made simple

A recently published HM Customs Business Brief has recently, it claims, clarified policy on the treatment of Value Added Tax (VAT) on hot take away food. The briefing paper (number 9) confirms that some minor amendments have simplified the rules in the light of a recent VAT tribunal decision.

Apparently: '' Hot take-away food can only be zero-rated if the main purpose in heating the food is other than enabling it to be consumed hot or warm. For example newly baked bread can be warm when sold but not normally heated for the purpose of allowing it to be consumed hot or warm, therefor it is zero-rated.''

The ruling must have been totally incomprehensible before the clarification now it is simply gobbledegook.

Perhaps the Queen's English Society and the Federation of Small Busineses ought to jointly seek shorter briefs.

With thanks to the tenacious Alan Roxborough of the North East England Voice of Small Businesses publishd by John Emmins of the Federation of Small Businesses.

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