Tax cases

Food rating

A subsidiary company of the taxpayer company supplied cold sandwiches and other similar items of sustenance to air passengers in the departure areas of various airports in the UK. The company claimed repayment of £253 310 on the basis that it had paid VAT at the standard rate when the food should have been zero rated as 'cold food not sold on the premises'. Customs denied the claim saying that all supplies of cold food in the departure areas of airports were supplies for consumption on the premises and therefore subject to the standard rate. The premises included the whole departure area not just the seating at food outlet areas. The tribunal agreed with Customs so the company appealed.
The judge in the High Court agreed with the tribunal with the following provisos. He said that the tribunal had considered the meaning of catering for...