SHHH coffee bar charging to "eat" in

When you have to prove you are flying with your boarding pass, even though you are in the departure lounge and you cant get there without one. The retailer is actually looking for whether or not they can recoup the VAT from your purchase.

Yea but everyone knows full well they just pocket the VAT money and don't bother passing it onto the customers

Yea but everyone knows full well they just pocket the VAT money and don't bother passing it onto the customers

Everyone knows means no one really knows.

Market forces drive proves and profit.

---------- Post added 21-03-2016 at 16:27 ----------

I did, none of the replies bear any resemblance to reality.

 

For a start hot drinks are always standard rated so charging extra to have them on the premises is nothing to do with VAT.

 

The only area where VAT differs between eat in and out are certain cold foods. However in that case you would only charge VAT on eat in orders, charging it on the eat out ones is fraud and a criminal offense.

 

So there is no 'VAT money' subsidising profits as you stated.

Maybe the retailer does not understand the VAT Notice 701/14: food. Someone should maybe challenge them for the reason for the extra charge.

*I did think that hot drinks were part of the standard rate not zero.

The VAT added to profits was using the Currys example of people flying out of an airport and why the retailer asks for your boarding pass. I used this as an example and this is true as I listened to a spokesman for Currys discuss this on the radio approx a year ago. I (wrongly) assumed this was also the case for VAT on hot food.

Power companies are a very different situation and not comparable to the high street.

 

You will find most shops offer much the same price for their goods.

How are power companies different from the big High Street chains?

Everyone knows means no one really knows.

 

Market forces drive proves and profit.

 

---------- Post added 21-03-2016 at 16:27 ----------

 

 

Maybe the retailer does not understand the VAT Notice 701/14: food. Someone should maybe challenge them for the reason for the extra charge.

 

*I did think that hot drinks were part of the standard rate not zero.

It's got nothing to do with vat. As I said hot drinks are always 20% rated regardless of eat in or takeaway so the charge is nothing to do with VAT. Plenty of companies charge different rates for eat in and takeaway, it reflects differing cost bases and capacity issues for the two offerings.

Isnt there a VAT cost to eating in as opposed to take away?

No as it's served hot there's no difference in VAT charge. If they gave you the constituent parts of coffee they wouldn't have to VAT the beans.

It's got nothing to do with vat. As I said hot drinks are always 20% rated regardless of eat in or takeaway so the charge is nothing to do with VAT. Plenty of companies charge different rates for eat in and takeaway, it reflects differing cost bases and capacity issues for the two offerings.

Are you even reading what I wrote. I conceded I was incorrect.

*I did think that hot drinks were part of the standard rate not zero.

---------- Post added 21-03-2016 at 16:42 ----------

No as it's served hot there's no difference in VAT charge. If they gave you the constituent parts of coffee they wouldn't have to VAT the beans.

I have already conceded this point as I was wrong. I assumed Hot Drinks where also VAT chargeable such as hot food.

---------- Post added 21-03-2016 at 16:46 ----------

Exactly - They charge what they can get away with.

How are power companies different from the big High Street chains?

The high street has direct competition.

Everyone knows means no one really knows.

 

Are they not to be under investigation soon, the news made a big thing of it at the end of last year???

The high street has direct competition.

Are you brain dead? The power companies are SUPPOSED to compete with each other. If that isn't direct competition, what is?

They are supposed to look like they are competing with each other while carving up the business among the 'big 6'

They are supposed to look like they are competing with each other while carving up the business among the 'big 6'

That is what I was getting at. And the same applies to High Street Chains, especially supermarkets, with the exception of Aldi and Lidl.

Not really, the supermarket chains do genuinely compete. Whereas the big 6 carve the country up into areas at take it in turns to be the cheapest in a given area so overall prices stay high.

Not really, the supermarket chains do genuinely compete.