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I had no idea alcohol didn't have VAT. I hate to agree with him but it absolutely should.
The landlord of my local will buy spirits from the supermarket when they are on offer as it is cheaper than getting it wholesale.
Yeah. I wonder why it's like that? If anything you'd think it would be the other way round.
Certain foods and drinks considered essentials don't attract vat. Hence Jaffa cakes arguing they were not in fact a cake. Any prepared food is considered a luxury item, which would include drinks that are served.
I think alcohol should attract vat in supermarkets, not reduce vat in a pub.
FYI it's the other way round: cakes are not luxury items but chocolate biscuits are. Apparently they baked a cake-sized jaffa cake as part of their legal case!
While that is all true. Post the jaffa cake thing we had a change in VAT laws. Some time in the 1980s. Where food and drink becomes vat applicable is served or prepared to eat on premises.
Part of the whole idea is eating out is a luxury where as preparing your own food at home is seen as essential.
As alcohol is not actually seen as a luxury product but simply food. It meets the same rules VAT wise. Although it has its own additional taxation like tabbaco.