A VERY FISHY SMELL IN BRUSSELS
CHIPPIES across Britain are being urged by their industry body to reject the perceived unfair favouritism towards bakers, and call for fish and chips to be exempt from VAT in the same way as bakers are.
The National Federation of Fish Friers’ (NFFF) is closely monitoring a sandwich shop’s legal challenge to the tax under European laws which hold that goods and services of a similar type must be taxed in a similar way.
CHIPPIES across Britain are being urged by their industry body to reject the perceived unfair favouritism towards bakers, and back a legal case that is pushing for hot takeaways such as fish and chips to be exempt from VAT in the same way other food sales are.
The National Federation of Fish Friers (NFFF) is closely monitoring a sandwich shop’s legal challenge to the tax under European laws which hold that goods and services of a similar type must be taxed in a similar way.
“The appeal against the tax has already passed the first tier of courts and is up to the next level,” said KPMG VAT partner Siddiq Musa.
“I can’t see it stopping there – this has got quite a way to run yet.”
The NFFF’s “fair play on VAT” campaign argues that fish and chip shops, as well as other hot takeaway providers, have been unfairly taxed since 1984 when the levy was extended to food heated specifically for their sale.
“We were never in favour of VAT being imposed on any hot food, although we do think there should be a level playing field,” the Federation said yesterday.
“We feel all takeaway food, whether it be hot or cold, should be treated the same and be zero rated.”
While the case continues on, potentially all the way up to Brussels, the NFFF suggests its members submit protective claims for over-declared VAT pending the outcome of the litigation.