Heated Foods and Beverages
Heated foods and beverages
The sale of prepared foods and beverages heated for consumption is taxable.
Prepared foods and beverages include:
- chicken
- coffee
- french fries
- fish and chips
- hot chocolate
- foods heated at the point of sale
- foods sold from a heated counter
- foods sold from a separate take-out counter
- pizzas
- tea
- other hot beverages
Prepared foods are zero-rated when sold unheated elsewhere than at counters from which these types of foods are usually sold.
Example
When a butcher sells heated barbecued chickens, such sales are taxable. However, barbecued chickens that go unsold and are then placed in a refrigerated counter are
zero-rated when sold from such a counter.
Beverages dispensed at the point of sale
Beverages such as milk, coffee, tea, iced tea, hot chocolate and juice are taxable when they are served on the premises.
Foods and beverages sold under a contract with a caterer
All foods and beverages supplied by a caterer are taxable, regardless of whether or not service of the foods and beverages is included in the terms of the contract.