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Catering Organisations - Major VAT repayments and Manfred Bog
by Terry Parkinson on 31 October 2011
There are still many catering organisations and retail food outlets that have not made claims to HMRC in respect of retrospective VAT repayments due to them for VAT wrongly charged on ‘take away food’ – in relation to premises issues or whether or not products are ‘freshly baked’.
The deadline for backdated claims was restricted from 31st March 2009, but it is still possible to submit claims backdated 4 years!
Further, the ECJ decision earlier this year in the case of Manfred Bog (not a name you are likely to forget?!) found that the following are a supply of goods and could mean that such supplies qualify for zero rating in the UK – i.e. again VAT may have been wrongly charged
- sausage and chips sold from mobile stalls
- popcorn and nachos sold in cinemas
- fried sausages, sausages in curry sauce, hot dogs, chips, steaks, pork belly, skewered meat and spare ribs sold from several snack stalls
- some supplies by catering firms
We are recommending that organisations lodge any outstanding claims in respect of this ruling before the UK introduces new preventative legislation, but also that specialist advice is taken to review all possible outstanding claims and retrospective repayments due - these can be very significant and can seriously improve cash flow in these difficult times!
If you want any further information on this blog post please contact us.
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