Takeaway the VAT?
The case, which went to the European Court of Justice (ECJ) earlier this year, concerned a mobile market stall-holder who started selling hot sausages and chips as well as other goods.
The ECJ ruled that the stall-holder’s goods were exempt from VAT.
Goods or services?
Commercial tax solicitor Sajeda Motala of law firm DWF told Foodmanufacture.co.uk that the case, Finanzamt Burgdorf v Manfred Bog, could have implications for the UK.
The ECJ judgment hinged on whether the food should be classified under the ‘supply of goods’ (zero rated for VAT) or the ‘supply of services’ (standard rated for VAT), she explained.
She said: “There is a fine distinction between goods and services. Mobile takeaway vans here pay VAT and this ruling could be relevant here. It may be that mobile operators should take advice.”
