Purpose of heating food

The taxpayer a franchisee of the Subway chain sold toasted sandwiches and meatball marinara which HMRC said should be treated as standard-rated supplies within VATA 1994 Sch 8 part II group 1 note 3(B).

The company appealed.

The First-tier Tribunal dismissed the taxpayer’s appeal on the basis the food was heated to above ambient air temperature so that it could be eaten hot.

The taxpayer appealed in one of more than 1 200 appeals from Subway franchises; the First-tier Tribunal directed that the case should be treated as the lead appeal.

The Upper Tribunal said the question was objective: was the food hot at the point of supply so that it could be eaten hot?

The tribunal decided it was clear that the toasted sandwiches and meatball marinara had been heated to enable them to be eaten hot and not for any other purposes....