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VAT

resolvedResolved · Low Priority · Version 2016

Katrina has attended:
Finance for Non-Financial Managers course

VAT

why do we pay more when 'eating in' rather than 'taking away'from places like Pret A Manger? is it service charge or VAT?

RE: VAT

Hi Katrina

The different prices you see at Pret depends on several variables:

If food is consumed EAT IN, then there is a VAT charge, whether it's HOT or COLD. There may be a service charge, depending on the size of the Pret and the location - often they now build the 'service charge' into the original price of the product. To fully understand the break down, try looking at your next receipt from Pret, as this will show exactly what the charges are.

If food is TAKEAWAY and COLD, there is no service charge and no VAT
(all cold takeaway food is zero VAT)

IF food is TAKEAWAY and hot there is no service charge, but you will pay VAT
(all hot takeaway food has VAT)

Hope this answers your question.

Sarah
STL Trainer

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Thu 29 Nov 2018: Automatically marked as resolved.

 

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