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VAT for Cafes

VAT for Cafes


I am sure this question has been asked million times before and I have also read the other threads on the same topic. 

I am working on the VAT of Cafe serving hot drinks , cakes, pastries , sandwiches and milkshakes. 

I have established the fact that Cakes are zero rated but are they still zero rated if they are served on premises in the sit in area ? Anything eaten in is VATable, isnt it ?

Cakes including sponges, fruit cakes, meringues, commemorative cakes such as wedding cakes, anniversary or birthday cakes are all zero rated. 


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By Mallock
24th Feb 2016 18:54

Anything served to eat on the premises is standard rated. Only carryout cakes are zero rated.

Staff training and a good till are essential.

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25th Feb 2016 09:31

Hot takeaway is standard rated as well.

Sit in and hot are always standard rated.  Everything else follows whatever rate you pay when you buy it.

The only way to do this is at the point of sale, so as Mallock says, everyone needs to understand the system.

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