VAT for hot take away food

The European Court of Justice ruled on 10 March 2011 that freshly prepared hot takeaway food should be zero rated for VAT purposes.

The Court found that the supply of services preceding and accompanying the supply of hot food for consumption straightaway was not predominant and therefore hot food should be zero rated and treated in the same way as cold food.

Businesses supplying takeaway food may be entitled to claim back the VAT overpaid as well as statutory interest for the past 4 years. The ruling potentially applies to all types of businesses involved in the supply of takeaway food from cinemas and mobile snack bars to restaurants.