Apologies if this has been covered before but I can't find a clear answer on this. My client is opening a shop that sells mostly hot and cold takeaway food. They will have a very small seating area though. After speaking with other local businesses they plan to not offer any table service or crockery for seated customers in order to avoid charging VAT on cold food. I don't think their plan is good enough to avoid VAT and from my reading any food consumed within your premises should have VAT charged. But I can't find a clear answer or case law to back up my concerns. Can anyone point me in the right direction?
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I have found this HMRC guide very helpful in the past.
https://www.gov.uk/guidance/catering-takeaway-food-and-vat-notice-7091#P.... Your situation is covered in it.