The sale of prepared foods and beverages heated for consumption is taxable.

Prepared foods and beverages include:

• chicken
• coffee
• french fries
• fish and chips
• hot chocolate
• foods heated at the point of sale
• foods sold from a heated counter
• foods sold from a separate take-out counter
• pizzas
• tea
• other hot beverages

Prepared foods are zero-rated when sold unheated elsewhere than at counters from which these types of foods are usually sold.

Beverages such as milk, coffee, tea, iced tea, hot chocolate and juice are taxable when they are served on the premises.

All foods and beverages supplied by a caterer are taxable, regardless of whether or not service of the foods and beverages is included in the terms of the contract.