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What are the VAT rules for catering invoicing?

22 April 2026

VAT on catering invoices is more complex than it looks. Hot food, cold sandwiches, alcoholic drinks, equipment hire — each can carry a different rate. Get it wrong and HMRC may issue a correction or disallow a client's input tax claim. This guide covers the key UK VAT rules caterers need to know.

Which VAT rate applies to catering?

In the UK, the standard VAT rate is 20%. Most catering services fall under this rate. However, there are important exceptions:

• 0% VAT applies to cold takeaway food — cold sandwiches, cold beverages, and most unprocessed food sold to take away rather than consume on the premises.
• 20% VAT applies to hot food, hot drinks, and any food consumed on the premises (eat-in catering). This includes buffets, served meals, and canapés at events.
• 20% VAT applies to all alcoholic drinks, regardless of whether they are consumed on or off the premises.

For most event caterers, the food you serve is hot or eaten on-site — which means 20% is the standard rate across your invoice. Alcoholic drinks are always 20%.

How do staffing and service charges work for VAT?

If your catering service is all-in — food, service, and staff all bundled together — HMRC treats the whole supply as a single catering service at 20%. You don't need to split it out.

If you invoice staff hire separately (for example, providing a crew for a client who is organising their own food), that's a labour supply rather than a catering service. Labour alone is still subject to VAT at 20%, so the rate is the same, but the nature of the supply on the invoice matters for VAT reclaim purposes.

If you're unsure how to classify a particular supply, a quick question to your accountant is worth it. A wrong classification on an invoice can affect your client's ability to reclaim VAT.

What must a VAT invoice include?

If you are VAT-registered and your client is a business (or wants to reclaim VAT), you must issue a full VAT invoice. It needs:

• Your business name, address, and VAT registration number
• An invoice date and a unique sequential invoice number
• Your client's name and address (and their VAT number if they are VAT-registered)
• A description of what was supplied
• The quantity and unit price of each item
• The VAT rate(s) applied and the VAT amount for each line
• The total amount excluding VAT and the total amount including VAT

If you mix zero-rated and standard-rated items on one invoice — say, cold canapés alongside hot food — each line must show the correct rate. A single catch-all line is not acceptable to HMRC.

Do the same rules apply to food trucks and delivery?

Yes. A food truck selling hot food attracts 20% VAT. Cold food sold to take away is zero-rated — same rules as any caterer. The key question is always: is the food hot or cold, and is it eaten on the premises or taken away?

For delivered catering (corporate lunches, drop-and-go buffets), HMRC looks at whether the food was hot when it left your kitchen or is intended to be reheated. Food delivered hot for immediate consumption is 20%. Cold meal kits may be zero-rated, depending on the contents.

What changes when you invoice a business client?

Business clients who are VAT-registered can reclaim the VAT you charge them — so your 20% does not necessarily increase their cost. They need a full VAT invoice to do this. Make sure your invoice includes all the required fields above, especially their VAT number if they've provided it.

When invoicing private individuals, you still charge VAT at the correct rate, but you don't need to include their VAT number (they don't have one).