Key facts
- Most basic food and drink for home consumption is zero-rated.
- Hot takeaway food and all catering is standard-rated at 20%.
- Confectionery, crisps, ice cream, and alcoholic drinks are standard-rated.
- The distinction between “food” and “confectionery” can be surprisingly tricky.
Zero-Rated Food (0%)
Most basic foodstuffs sold for home consumption are zero-rated:[1]
- Bread, flour, rice, pasta
- Fruit and vegetables (fresh and frozen)
- Meat, fish, poultry (uncooked)
- Milk, cheese, eggs, butter
- Tea, coffee, sugar
- Plain biscuits and cakes
Standard-Rated Food (20%)
The following are charged at 20%:[1]
- Confectionery (chocolate, sweets, chocolates)
- Crisps and savoury snacks
- Ice cream
- Alcoholic drinks
- Soft drinks (including bottled water in some contexts)
- Hot takeaway food
- Catering (any food served in a restaurant, café, or food outlet)
The Hot Food Rule
Food that is hot when supplied to the customer is standard-rated. “Hot” means above ambient temperature and heated for the purpose of being consumed hot.[2]
Famous Edge Cases
| Item | VAT Rate | Why |
|---|---|---|
| Jaffa Cakes | 0% | Classified as cakes, not biscuits (famously settled by a tax tribunal) |
| Chocolate biscuits | 20% | Confectionery (chocolate-covered) |
| Flapjacks | 0% | Cakes |
| Pringles | 20% | Savoury snacks (despite initial legal challenge) |
| Tortilla chips (plain) | 0% | Treated as food, not a snack product |
Tip: If you sell mixed-rate food items, you need a system to identify the VAT rate per product. EPOS systems usually handle this. See our VAT Retail Schemes guide.
Frequently Asked Questions
Is food zero-rated for VAT in the UK?
Most basic food for home consumption is zero-rated, including bread, fruit, vegetables, meat, milk, and plain biscuits. However, confectionery, crisps, ice cream, hot takeaway food, and catering are standard-rated at 20%.
Is hot takeaway food subject to VAT?
Yes. Hot takeaway food is standard-rated at 20%. Food is considered “hot” if it is above ambient temperature and has been heated for the purpose of being consumed hot.
Are Jaffa Cakes zero-rated or standard-rated?
Jaffa Cakes are zero-rated at 0% because they are classified as cakes, not chocolate-covered biscuits. This was famously settled by a tax tribunal.
Is restaurant food subject to VAT?
Yes. All catering — food served in restaurants, cafés, or food outlets — is standard-rated at 20% VAT, regardless of whether the food items themselves would be zero-rated if sold in a shop.
Are chocolate biscuits zero-rated?
No. Chocolate-covered biscuits are classified as confectionery and are standard-rated at 20%. Plain biscuits without chocolate are zero-rated.
Further Reading
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Sources
- Food products (VAT Notice 701/14) — GOV.UK
- Catering and takeaway food (VAT Notice 709/1) — GOV.UK
- VAT rates — GOV.UK