How do restaurants or take-aways calculate/apportion VAT on sales wo segrated tills?

Discussion in 'Tax' started by accsvalue, Apr 12, 2012.

  1. accsvalue

    accsvalue Frequent Poster

    How do restaurants or take-aways calculate/apportion VAT on sales if they don't have a sophisticated till to segregate the VAT?
  2. bazermc

    bazermc Frequent Poster

  3. mandelbrot

    mandelbrot Former user

    Well all their sales are at the reduced rate, except for soft drinks.

    The easiest way then is generally to take the opening stock of soft drinks, plus purchases in the period, less closing stock - which gives you the number of drinks sold. You know what the selling price is, so you can fairly easily work out the VAT from there.

    Then the rest of the sales receipts are inclusive of VAT at the reduced rate.

    Maybe someone else has a better method, but for a small take away this would work.
  4. Tomorrow

    Tomorrow Frequent Poster

    It is my understanding that the scheme you refer to is for retailers.
    I dont think that it can be used for take aways/ restaurants.

    For example if you are selling hot take away food, you cannot use it or if you are 'processing' raw materials ie making sandwiches.

    I think the difficulty is if you are selling cold take away food, as this would be zero rated but other than that it is all reduced except for alcohol/soft drinks.

    And for drinks, I think the above is acceptable.