Fresh Camdem St 27% VAT??

sufferinjaysus

Fresh on Camdem St are now charging 13.5% VAT on a €4.99 meal deal if you eat it on the premises. In order words the price is €4.99 to take out and €5.66 to sit at their tables.

They claim this is a government charge and not their fault.

However, in the meal deal, which consists of a prepared roll, a bag of crisps and a bottle of water, am I not already paying 13.5% VAT on the roll and crisps??

So am I now paying 27% VAT for this food if I want to sit it?

Have I got this wrong or are Fresh charging customers extra under the guise of VAT??

dudara

I'm guessing that the reason is as follows. They are providing a service to you by allowing you to sit in and eat it on their premises. This would be charged at 13.5% VAT.

From Citizen's Information

13.5% is a reduced rate of VAT for items including fuel (coal, heating oil, gas), electricity, restaurants, admission to cinema, music concerts and museums, veterinary fees, building and building services, agricultural contracting services, newspapers, short-term car hire, cleaning and maintenance services.

You're not double paying VAT on the food - you're paying VAT for the "restaurant" aspect.

PCPhoto

its not just Camden street ... Fresh in Smithfield have the same notice up in their shop.

They say Revenue have informed them that they must charge 13.5% for eat-in .... basically my interpretation is that its because they are charging for the service of providing food and a place to eat....However, if they looked at their accounts some of the food stuffs sold are subject to 21% VAT (which is added into the price for sale) ... so its possible there could be a major audit resulting in prices dropping or the removal of the "eat-in" facility.

My understanding is that they are leaving themselves open to serious litigation .... if a customer purchases a Sandwich and after paying decides they will sit down and eat the sandwich on the premises.... will the person be asked to leave??? or asked to pay the 13.5% ....either way it will result in bad business for FRESH.

Revenue needs to be clear with FRESH and FRESH needs to change its pricing structure to reflect an eat-in or take-away policy.

sufferinjaysus

Ok, I knew I could possibly be wrong on this.

However, if you eat in a restaurant and you buy a burger for example, do you pay 13.5% on the product and then a further 13.5% for your service?

I thought they just put 13.5% on the price before VAT?

nompere

Revenue have always been completely clear on this. Any food seller should be well aware of Revenue's position. It's all laid out in this Revenue leaflet:

http://www.revenue.ie/en/tax/vat/leaflets/food-and-drink.html

dudara

This may be better suited to the Taxation forum

dudara

sufferinjaysus

Ok so Fresh are basically saying now that revenue charge an extra 13.5% for any food consumed on premises.

Was this just brought in or was it always there and never enforced??

nompere

sufferinjaysus wrote: »

Ok so Fresh are basically saying now that revenue charge an extra 13.5% for any food consumed on premises.

Was this just brought in or was it always there and never enforced??

It's been there as long as I've been a tax practitioner.

It has always been enforced, but sometimes businesses try to push the limits. They don't tend to try pushing a second time.