SHHH coffee bar charging to "eat" in

Just been to SHHH coffee bar at Crystal Peaks next to library, is nice coffee, more expensive than Costa though, there is now a notice saying that if I want to "eat" in the bar itself it will cost an extra ten percent.

 

So a large Cappuccino now costs 2.86 (2.60+0.26).

 

Funnily enough I was the only one in there, if I had been a bit quicker of thought at the till I would have argued that I was drinking not eating.

 

Hope the supermarkets don't see this or they might start asking customers to rent the baskets and trolleys.

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

I believe there is as fast food outlets have been asking about eating in or out for a couple of years now but as far as I know the price is the same to the customer and probably just registers differently on the till.

I believe there is as fast food outlets have been asking about eating in or out for a couple of years now but as far as I know the price is the same to the customer and probably just registers differently on the till.

 

Its all due to VAT. The VAT part of your bill is either given to the HMRC or the retailer keeps it and spreads the saving across all orders. Retailers in airports do the same thing with duty on flights within the EU and those outside. 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.

Isn't there a VAT cost to eating in as opposed to take away?

 

 

I think that's right, no VAT on takeaway, VAT on eating in. Maybe a cafe owner will tell us the correct answer.

 

Angel1.

or the retailer keeps it and spreads the saving across all orders

Or simply pockets the extra profit!

Or simply pockets the extra profit!

 

To be fair, companies set their prices dependant on their profits. This VAT money will go into profits and so will drive prices down for all.

To be fair this is a marketing failure, if they charged the drink at the price to drink in as the normal price and offered a 10% discount on takeaway no one would see it as a negative. If you drink in the coffee shop has the extra cost of washing the pots and providing an area for you to sit in.

To be fair, companies set their prices dependant on their profits. This VAT money will go into profits and so will drive prices down for all.

I disagree - companies set their prices on what they think we will be daft enough to pay (ie: what they can get away with). Power companies are a good example. So are the major supermarkets when compared to Aldi and Lidl.

To be fair, companies set their prices dependant on their profits. This VAT money will go into profits and so will drive prices down for all.

 

What VAT money? The VAT goes to the government not the business.

I disagree - companies set their prices on what they think we will be daft enough to pay (ie: what they can get away with). Power companies are a good example. So are the major supermarkets when compared to Aldi and Lidl.

 

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. This is due to the market force. It does not drive prices up, it drives them down. The less competition the less pressure to compete. Energy has only a few players, while the high street has countless options to the consumer.

 

This VAT goes into profits and most businesses know they need to make X amount of profit to keep trading. The VAT does not simply go into the back pocket of the business owner. Its pretty cynical to think that they just keep it.

 

---------- Post added 21-03-2016 at 16:10 ----------

 

What VAT money? The VAT goes to the government not the business.

 

Go back and read the thread.

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. This is due to the market force. It does not drive prices up, it drives them down. The less competition the less pressure to compete. Energy has only a few players, while the high street has countless options to the consumer.

 

This VAT goes into profits and most businesses know they need to make X amount of profit to keep trading. The VAT does not simply go into the back pocket of the business owner. Its pretty cynical to think that they just keep it.

 

---------- Post added 21-03-2016 at 16:10 ----------

 

 

Go back and read the thread.

 

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.