Invoicing · VAT
Invoicing and VAT for a restaurant — UK and Gibraltar
Restaurant invoicing comes down to a small number of rules — but they are decided at the till, not in the filing cabinet. And between the UK and Gibraltar, the picture is genuinely different. Here is what applies to you.
The UK: same menu, different rates
Food and drink consumed on the premises is standard-rated at 20 %. Cold takeaway food intended to be eaten off the premises is generally zero-rated, while hot takeaway food is standard-rated. Alcohol is standard-rated in every case.
So the same sandwich can carry two different rates depending on whether it is eaten in or taken away, and whether it is served hot. That decision is made at the point of sale — which means your till has to ask the question and record the answer. If it does not, you cannot evidence the zero rate afterwards, and the standard rate applies to everything.
Gibraltar: no VAT at all
Gibraltar does not levy VAT. There is no rate to split, no VAT return to file on your sales, and no eat-in versus takeaway distinction to evidence for VAT purposes.
What still matters is the record: clean sales data, stock, and the ability to produce a proper invoice for a corporate customer. A business dealing with both sides of the frontier needs a till that handles a VAT territory and a non-VAT one without pretending they are the same — that is the practical point, and it is where most systems designed for one country fall down.
What a proper invoice contains
- your trading name and address;
- your VAT number, where you are VAT-registered;
- a sequential invoice number and the date;
- a description of what was supplied;
- the rate and amount of VAT per line, where VAT applies;
- the customer’s name and address for business customers.
A till receipt is fine for a walk-in customer. The moment a business customer needs it for their own records, those details become necessary — and your till should produce them without anyone retyping anything.
The three questions to ask
- “Does my end-of-day report already split eat-in, hot takeaway and cold takeaway?”
- “Can I issue a full VAT invoice to a business customer straight from the till?”
- “If I trade in both the UK and Gibraltar, does the system handle both correctly?”
Questions we get asked
Is takeaway food zero-rated in the UK?
Cold takeaway food intended to be eaten off the premises is generally zero-rated; hot takeaway food is standard-rated at 20 %, as is anything consumed on the premises. Alcohol is standard-rated in every case.
Is there VAT in Gibraltar?
No. Gibraltar does not levy VAT, so there are no rates to split and no VAT return on your sales. What still matters is keeping clean sales records and being able to issue a proper invoice to a business customer.
Do I have to issue an invoice to every customer?
No. A till receipt is sufficient for a walk-in customer. A full invoice — with your VAT number, a sequential number, a description and the VAT per line — becomes necessary when a business customer needs it for their own records.
I trade on both sides of the frontier. What should I look for?
A system that handles a VAT territory and a non-VAT one without treating them as the same. Most tills are designed for one country and force awkward workarounds for the other — ask to see both configurations before signing.
We handle both sides of the frontier, so we had to solve this. Whoever you choose, ask to see both configurations working before you sign.