In Marks and Spencers PLC v The Commissioners for HM Revenue and Customs: [2019] UKUT 0182 (TCC), the Upper Tribunal decided that free wine, supplied in a dine for two £10 with free wine offer was a standard rated supply and the £10 should be apportioned to the supply of both wine and food.

Food is zero rated for VAT, and wine is standard rated.

The UT found that there was a direct link between the supply of wine and the three items of food:

The result that the wine was not 'free' and the £10 consideration must be allocated across the four items in the offer  for VAT purposes.

As the wine was not free the terms of the bespoke retail scheme did not apply.

Useful guides

VAT on food and catering

External links

Marks and Spencers PLC v The Commissioners for HM Revenue and Customs: [2019] UKUT 0182 (TCC)

Marks and Spencer plc v HMRC [2018] TC06471