We have purchased a vending machine from which our employees/visitors can purchase hot drinks.
Should we be paying VAT on the income we receive from it?
Thanks in advance
Replies (2)
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VATable supplies
All supplies are potentially VATable - the question is whether they are standard-rated or zero-rated supplies.
The fact that the supply is made by a vending machine is irrelevant. If the supply is of hot drinks for consumption on the premises, the supply is standard-rated at 20%.
Owned ?
I assume you're the sole owner here. In which case, I agree with Euan.
Sometimes the machines are owned operated by a third party and the site owner receives a commission. If that's so, you'd need to look at the agreement to see who takes responsibility for the VAT.