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Catering adaptation

The standard schemes work on the basis that the VAT liability of the goods purchased will have the same VAT liability when they are sold. However, with food and drink, this is not necessarily the case, as the goods purchased may have been zero-rated when purchased but are liable to VAT at the standard rate when they are supplied due to the fact that they are supplied in the course of catering. Businesses using the point of sale scheme will be able to correctly account for VAT as the VAT liability will be determined at the time the goods are supplied. However, under the Direct Calculation and Apportionment schemes, the calculation is based on