Purpose of warm food

The taxpayer a catering company disputed HMRC’s assertion that certain items of food which were supplied to customers warm should be subject to the standard rate of VAT as hot food.

The First-tier Tribunal decided in favour of HMRC so the company appealed.

Supplies of food in the course of catering are excepted from zero rating under VATA 1994 Sch 8 Group 1 note (3) which states that such supplies include hot food for consumption off the premises.

The question before the tribunal was effectively therefore the subjective one of what was the purpose of the taxpayer in allowing the food to be eaten warm.

The Upper Tribunal (Tax and Chancery Chamber) said that on the taxpayer’s evidence the reason for the food being served warm was to demonstrate...