
Is There VAT on Food in the UK?
Most food in the UK is zero-rated for VAT, but restaurant meals, takeaway food and catering are often taxed. Learn how VAT applies to different food types.
VAT (Value Added Tax) in the UK is a tax charged on the sale of goods and services, but not all items are treated the same. When it comes to food, VAT rules are complex. Some items are zero-rated, others are taxed at the standard rate, and some fall under special exceptions based on how and where they’re sold.
This guide explains when VAT is charged on food, how it applies to shops, takeaways, catering and hospitality, and what rates apply to different types of food and drink.
Is VAT Charged on Food and Drink?
Yes, but it depends on the type of food, how it’s sold, and where it’s consumed.
In general:
Most basic food and drink items for home consumption are zero-rated for VAT (0%).
Food sold in restaurants, cafés or pubs is taxed at the standard VAT rate (currently 20%).
Some takeaway and catering food is also subject to VAT, depending on temperature and service.
What Is VAT?
Value Added Tax is a consumption tax paid by the end consumer and collected by businesses on behalf of HMRC. There are three main VAT rates in the UK:
Standard rate: 20% (applies to most goods and services)
Reduced rate: 5% (limited to specific goods, such as children’s car seats and home energy)
Zero rate: 0% (still a VAT-taxable supply, but charged at 0%)
Businesses must register for VAT if their VAT-taxable turnover exceeds £85,000 in any 12-month period.
What Foods Are VAT Zero-Rated?
Zero-rated food and drink generally includes:
Bread, pasta, rice, and flour
Fruit and vegetables
Meat and fish
Milk, cheese and eggs
Breakfast cereals
Tea, coffee and fruit juice
Tinned and frozen food
Baby food
Cakes and plain biscuits
These are items considered essential and intended for home consumption.
Which Foods Are Standard-Rated for VAT?
Standard-rated food and drink includes:
Ice cream and frozen desserts
Confectionery (sweets and chocolates)
Soft drinks and alcohol
Crisps and salted snacks
Catering and hot takeaway food
Meals eaten in restaurants or cafés
Even zero-rated food becomes standard-rated when it’s part of catering, hot food or on-premises consumption.
What Are the VAT Rates for Food Bought in a Pub or Restaurant?
Is There VAT on Restaurant Food?
Yes. All food and drink served in a restaurant, café, pub or similar setting is subject to VAT at the standard rate of 20%. This includes:
Starters, mains, desserts and sides
Alcoholic and soft drinks
Meals consumed at the venue or outdoor seating area
Service charges and tips may also be subject to VAT if they are compulsory or retained by the business.
What Are the VAT Rates for Takeaway Food?
It depends on the temperature and type of food.
Hot Takeaway Food
Hot takeaway food is generally standard-rated at 20%, including:
Burgers, chips, pizza, kebabs
Hot pies or pastries
Ready-to-eat toasted sandwiches
Cold Takeaway Food
Cold takeaway food is usually zero-rated, such as:
Cold sandwiches
Salads
Fresh fruit
Bottled water
But there are exceptions. Items like crisps, ice cream and some drinks may still be taxed at 20%, even if cold.
What Are the VAT Rates for Food and Drink Supplied by a Caterer?
Catering is always standard-rated, regardless of the food’s temperature or type. If you hire a caterer for an event, all food and drink served – hot or cold – will usually be taxed at 20%.
This includes:
Wedding catering
Corporate buffets
Private chefs
Event canapés and platters
Catering services count as a supply of hospitality, which is taxable.
Is VAT on Food Still 5%?
No. The 5% reduced rate on hospitality and tourism (including restaurant food and takeaways) was a temporary COVID-19 measure. It was introduced in July 2020 and later increased to 12.5% before returning to the standard rate of 20% in April 2022.
As of now, there is no reduced rate for restaurant or takeaway food.
What Is the VAT Threshold?
If your business’s VAT-taxable turnover exceeds £85,000 in a 12-month period, you must register for VAT with HMRC.
If you sell both zero-rated and standard-rated goods (for example, a café that sells both cakes and coffees), your total turnover includes both.
Once registered, you must charge VAT on standard-rated items and submit VAT returns, usually quarterly.
Do I Need to Register My Food Business for VAT?
You must register if your taxable turnover exceeds the VAT threshold. If you run a restaurant, takeaway, catering business or food stall, chances are you're selling standard-rated items, so VAT applies.
Even if you’re under the threshold, voluntary registration can help you reclaim VAT on business expenses – but you’ll need to add VAT to your prices and handle the admin.
What Is My VAT Number?
A VAT-registered food business will be given a VAT registration number, which must be displayed on:
Invoices and receipts
Company documents and websites
HMRC submissions
You can check any VAT number via HMRC’s online service to ensure a business is correctly registered.
Final Thoughts
VAT on food in the UK varies depending on what you buy and where. Most staple groceries are zero-rated, while restaurant meals, hot takeaways and catering services are taxed at the standard rate of 20%.
Understanding these rules is key whether you’re a consumer checking your bill or a food business managing compliance. If in doubt, consult a VAT specialist to ensure you're charging and reclaiming tax correctly.