VAT

kaholeung62

My friend runs a coffee shop. She she is charging her customer 9% VAT on everything. Recently, a bookkeeper told her for bottled water, she should charge 0%, a cup of coffee should be 23%. If the order is for take away, she should charge 0%. Is the bookkeeper correct?

Also she buys her supply for supermarket sometimes. The receipt does not show the VAT rate. So she does not what rate she should claim back. Is there any website can found out?

Any comment would be appreciated.

dbran

Hi

Your bookkeeper friend in incorrect almost everywhere.

If the food is supplied as part of a meal the rate is always the reduced rate 9% except for alcohol, soft drinks or bottled water which are always at the standard rate 23%.

If the food is takeaway it can be at zero, reduced or standard rate depending on what is being sold.

It is quite complex and it is very important that you get it right. The information is available here.

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

Best Regards

dbran

kaholeung62

dbran,

Thank you.