By virtue of LN 347 of 2017, item 2 of paragraph (2) of Part 5 of the 5th Schedule has been amended so that food which is served for consumption by any person in the same establishment, shall now be considered as food supplied in the course of catering.
The supply of food for human consumption is an exempt with credit supply in terms of item 9 of part 1 of the 5th Schedule of the VAT Act, with the exclusion of food supplied in the course of catering. With immediate effect, food which is served for consumption in the same establishment is considered to be food supplied in the course of catering and is therefore not an exempt supply. VAT at 18% is charged on such supplies.
