What Is the VAT Rate on Catering Vans?

by martin
(somerset)

Business tax documents and calculator for VAT on catering equipment

Business tax documents and calculator for VAT on catering equipment

What is the VAT rate on used catering vans?

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Apr 06, 2026
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by: MobCater

Hi Martin,

This is a question that catches a lot of people out, so well worth asking before you buy.

If you're buying a used catering van from a private seller (another individual, not a business), there's no VAT to pay. It's a straightforward private sale, same as buying a used car from someone on the street.

If you're buying from a VAT-registered dealer or business, then yes, VAT at 20% will be added on top of the sale price. This is standard rate VAT that applies to most goods and services in the UK, including catering vehicles and equipment. So a van advertised at £10,000 plus VAT would actually cost you £12,000.

Now here's the important bit. If you're running your catering business as a sole trader and your turnover is below the VAT threshold (which was £90,000 per year the last time I checked), you don't need to register for VAT. That means you can't claim back the VAT on your purchases, but you also don't need to charge your customers VAT on their bacon rolls and coffees.

If your turnover goes above the threshold, you'll need to register for VAT with HMRC. At that point you can claim back VAT on business purchases (including the van if you bought it from a VAT-registered seller and kept the invoice), but you'll also need to add VAT to your selling prices. Most mobile caterers I know stay well under the threshold, especially in the first few years.

One thing to watch out for: even if you're not VAT registered, you can still reclaim VAT on a van purchase through the Flat Rate Scheme if you're eligible and it's a capital asset over £2,000. It's worth talking to an accountant about this before you buy, because it could save you a decent chunk of money.

For the food you sell, hot takeaway food is standard rated at 20% VAT, but cold takeaway food is zero rated. So if you're selling hot burgers and teas, that's standard rate. Cold sandwiches and bottled water are zero rated. This only matters if you're VAT registered though.

Best wishes

Martin, good luck finding the right van.

David

Disclaimer: Tax rules change regularly and your situation may be different. This is general guidance based on my experience, not professional tax advice. Always check the latest HMRC guidance or speak to an accountant before making financial decisions.

Try the free MobCater App — our startup cost calculator helps you budget for your van purchase and running costs: https://www.mobcater.co.uk/mobile-catering.html

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