Beefy Bake - Budget 2012: Greggs shares fall on VAT blow

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More than £20m was wiped off the value of bakery company Greggs on Thursday, following the Government's announcement that all hot takeaway food would be subject to VAT.

Currently, most hot takeaway food such as meals bought from a restaurant or fish and chip shop are subject to VAT. However, a small number of items have managed to avoid the tax, including rotisserie chickens sold in supermarkets and sausage rolls and hot bakes sold by some outlets, notably Greggs. Greggs' shares fell 4pc to 528p on Thursday morning, a day after the Treasury announced in the Budget that: "VAT will also apply, to the extent that it does not already do so, to the sale of hot food, cold food consumed on the supplier’s premises, sports drinks and holiday caravans, and to the rental of hairdressers’ chairs. This will have effect from 1 October 2012."....Read more here--: Budget 2012: Greggs shares fall on VAT blow

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Re: Beefy Bake - Budget 2012: Greggs shares fall on VAT blow

'Pasty lover' David Cameron defends VAT hike

David Cameron has said he "loves a hot pasty", but defended the decision to slap VAT on all sales of the snack. The prime minister told a press conference ministers had to make sure the rules were "fairly applied". He said small businesses had paid the tax on their takeaway food for 20 years, but big supermarkets had not......Read more here--: David Cameron defends VAT hike

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Re: Beefy Bake - Budget 2012: Greggs shares fall on VAT blow

Pastiche

VAT is European Union TAX


The history of VAT in the European Union

On 11 April 1967 the first two VAT Directives were adopted, establishing a general, multi-stage but non-cumulative turnover tax to replace all other turnover taxes in the Member States. However, the first two VAT Directives laid down only the general structures of the system and left it to the Member States to determine the coverage of VAT and the rate structure.

It was not until 17 May 1977 that the Sixth VAT Directive was adopted which established a uniform VAT coverage. On 1 January 2007, the Sixth Directive was replaced by the VAT Directive (Directive2006/112/EC). It brings together the various provisions into one piece of legislation, so gives a clearer overview of EU VAT legislation currently in force. The VAT Directive guarantees that the VAT contributed by each of the Member States to the Community's own resources can be calculated.

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Re: Beefy Bake - Budget 2012: Greggs shares fall on VAT blow

The Country has been Saved by the Beefy Bake!!!


Government does U-turn over 'Cornish pasty tax'

The government is to reverse its plans to impose VAT on Cornish pasties, the BBC has learned. Ministers have also reduced the intended 20% charge which was due to be levied on static caravans to 5%. The U-turn from Chancellor George Osborne's Budget follows a large-scale protest by bakers and caravanning enthusiasts. The government has altered the definition of what is a "hot" pasty to allow the reversal of its plans. After the amendment, food such as sausage rolls or pasties sold on shelves - that is, cooling down, rather than being kept hot in a special cabinet - will not be liable for VAT, BBC political editor Nick Robinson says. During a parliamentary debate last week, MPs from all three main parties criticised Mr Osborne's proposals, arguing they were unenforceable and would have an adverse impact on jobs and businesses....Read more here: Government does U-turn over