TAX NEWS: Revenue advises on catering after Compass victory. By Rebecca Benneyworth
HMRC has provided guidance on the liability of supplies of catering to VAT following the judgement of the Court of Appeal in the case of Compass Contract Services UK Limited, which HMRC has decided not to appeal to the House of Lords.
The problem area is the definition of catering for the purposes of VAT. All food and drink supplied in the course of catering is standard rated.