Is There VAT on Food Items in the UK?

Understanding how VAT applies to food is essential—especially if you’re running a VAT-registered business or trying to figure out what’s included when using a UK tax calculator. This guide breaks down everything you need to know about VAT on food items in the UK, including what’s zero-rated, standard-rated, and where things get tricky.

Understanding VAT on Food

Most food and drink for human consumption is zero-rated in the UK. But there are exceptions—mainly concerning processed, prepared, or luxury food items. The difference between zero-rated and standard-rated can be subtle, and it often depends on how the product is sold, prepared, or even presented.

Quick Summary of VAT Rates on Food:

Food Type	VAT Rate	Notes
Raw meat and fish	Zero-rated	Fit for human consumption
Vegetables, fruits, pulses, and cereals	Zero-rated	Unprocessed and edible
Cakes and plain biscuits	Zero-rated	Unless chocolate-coated
Chocolate-covered biscuits	Standard-rated	Treated as confectionery
Hot takeaway food	Standard-rated	If sold to be eaten hot
Ice cream, sorbets, frozen desserts	Standard-rated	Designed to be eaten while frozen
Sandwiches	Zero-rated	Unless sold as part of catering
Confectionery (sweets, chocolates, etc.)	Standard-rated	Includes sweet snack bars, candies, etc.
Non-alcoholic beverages (milk, tea, coffee)	Zero-rated	Most natural drinks
Soft drinks and carbonated beverages	Standard-rated	Cola, lemonade, tonic, etc.
Alcoholic beverages	Standard-rated	Wine, beer, cider, etc.

Which Food Items Are Zero-Rated?

HMRC allows a zero rate of VAT on most everyday foodstuffs intended for home consumption. This includes:

• Raw meat and poultry
  
• Fresh or frozen fruits and vegetables
  
• Bread, plain biscuits, and cakes
  
• Rice, pasta, and flour
  
• Milk, eggs, and cheese
  
• Tea, coffee (not in drinks form), and cocoa
  
• Natural sweeteners like honey and sugar
  

Tip: If you’re supplying ingredients for cooking or baking, chances are they’re zero-rated.

Read Our more Detailed Guides on VAT:

• What is VAT and How VAT Works?
  
• What is VAT Exempt in the UK: All VAT Exempt Items
  
• Are Books VAT Exempt in the UK? A Complete Guide for 2025
• Is VAT Chargeable on Alcohol in the UK?
• Is There VAT on Car Parking in the UK?

Which Foods Are Standard-Rated?

Some foods attract standard VAT (currently 20%) due to their nature or how they are sold. Common examples include:

• Confectionery – sweets, chocolates, and similar snacks
  
• Ice cream and frozen desserts
  
• Soft drinks – carbonated drinks, squash, cordials
  
• Prepared meals sold hot
  
• Chocolate-covered biscuits
  

Example:

Item	VAT Rate
A fresh apple	0%
An apple pie from a bakery (served hot)	20%
Pack of biscuits	0% (if plain) or 20% (if chocolate-covered)

VAT on Bakery Products

This area is especially complex. Here’s how VAT applies:

Bakery Item	VAT Rate	Notes
Bread, buns, rolls	0%	Everyday staples
Cakes and flapjacks	0%	Unless sold hot
Chocolate-covered biscuits	20%	Considered confectionery
Hot takeaway food	20%	Supplied in the course of catering

Keep in mind, how the food is sold (hot or cold, takeaway or not) also affects the VAT treatment.

VAT on Hot Food and Takeaway

If you’re selling hot food or beverages for immediate consumption, it’s likely standard-rated. This applies to:

• Hot sandwiches
  
• Pizzas
  
• Pies
  
• Takeaway meals
  

However, cold takeaway food, like a pre-packed sandwich or salad, may be zero-rated—unless it’s sold in the course of catering.

What About Drinks?

Here’s where the VAT rules become more specific:

Drink	VAT Rate	Notes
Milk	0%	Including flavoured milk
Tea and coffee (not sold hot)	0%	Loose or packaged
Soft drinks	20%	Includes fizzy and still varieties
Alcohol	20%	Always standard-rated
Milkshakes	0% or 20%	Based on ingredients and usage

Hot drinks, such as coffee and tea sold to go, are always standard-rated.

Special Food Categories

Confectionery

Almost all sweet treats—like chocolates, sweets, and toffees—are standard-rated, even if they’re part of a celebration (e.g. chocolate birthday cake toppers).

Cake Decorations

• Edible decorations: Usually zero-rated
  
• Inedible decorations: Standard-rated, unless part of the cake and not charged separately
  

Using a Tax Calculator? Watch for VAT Classification

When you’re inputting food-related costs into a UK VAT calculator, make sure to:

• Separate zero-rated and standard-rated items
  
• Check if food was sold hot or cold
  
• Review ingredient lists for processed goods
  

Misclassifying food VAT can lead to errors on VAT returns—something HMRC doesn’t take lightly.

Summary: VAT on Food Items UK

Category	VAT Rate
Basic groceries (bread, milk, fruit)	0%
Confectionery (chocolates, sweets)	20%
Takeaway hot food	20%
Cakes (not sold hot)	0%
Ice cream and frozen desserts	20%
Alcoholic drinks	20%
Tea/coffee (cold, not prepared drinks)	0%

Need Help Calculating VAT on Food Sales?

If you’re unsure how to treat your food items for VAT, or you run a business that regularly deals with mixed food supplies, try our free UK VAT Calculator to see how your invoices should break down.

Final Tip: Always refer to HMRC VAT Notice 701/14 for complete guidance or consult a VAT specialist if your food sales include complex or mixed supplies.