VAT FAQs
Welcome to the FAQs for VAT on Dines.
In this article, we'll walk you through all the important details when it comes to VAT on our system. We'll answer common questions like how to set the correct VAT rates on your products, why we charge VAT on our fees, and where to find relevant VAT reports for your products.
VAT rules can be detailed, and what applies to your venue depends on factors specific to your business. Where a question comes down to tax law rather than how Dines works, we've pointed you towards HMRC's own guidance or suggested checking with your accountant.
So without further ado, let's jump in.
On this page
Does Dines Charge VAT on My Sales?
No. We don't charge VAT on your sales, because we aren't selling anything to your customer. We're simply the platform that facilitates the transaction between you and your customer.
You're the seller, which means that if you're VAT-registered, it's up to you (and your accountant) to account for VAT in your own records and returns.
Where Does VAT Come Into Play?
Dines is a VAT-registered business. That means we're legally required to charge VAT on the services we provide you, including card processing fees for transactions you take using our system.
This applies whether you're VAT-registered or not. Because we're VAT-registered, the services we provide are classed as taxable under UK VAT law.
Can I Set VAT Rates on my Products on Dines?
Yes. You can apply VAT rates to specific products via the Dines dashboard. This helps keep your sales and VAT reports (more on those below) accurate.
To do this, log in to your Dines account and choose Menu on the left-hand panel. This opens a list of the items you sell and the categories you sell them in.
At the top of the page, you'll see an Items tab. Select this, then open any item you'd like to update the VAT rates for. Scrolling towards the bottom of the page, you'll find a VAT section, where you can set the VAT rate for collection orders and the VAT rate for on-premise orders separately.
Both rates default to 20%, but the drop-down menu on each lets you choose 0%, 5%, 12.5% or 20% instead. We offer separate rates for collection and on-premise orders because VAT rules can change depending on how the customer receives their order. For more on this, please see HMRC's guidance on VAT rates.
Is VAT Included in the Price of my Items?
Yes. The price you enter in the Price field of each item already includes VAT, and it's exactly what your customer pays. Changing the VAT rate on an item doesn't change that price, only how much of it we record as VAT rather than net sales.
If you're unsure how this affects your own pricing strategy, we recommend checking with your accountant to make sure everything lines up with the rest of your VAT setup.
I'm Not VAT Registered - Why am I Being Charged VAT?
This is a common question, and a fair one. You're charged VAT because we, Dines, are VAT-registered, and by law a VAT-registered business must charge VAT on the services it provides. It's no different to being charged VAT by any other VAT-registered supplier you use to run your venue, whether that's your electricity provider or a venue hire fee. VAT still applies, even where it can't be reclaimed.
Can I Reclaim the VAT?
We'd always suggest checking with your accountant on this one, but generally, if you're VAT-registered, you can reclaim the VAT paid on Dines service fees as part of your normal VAT return. To help with this, you'll find your invoices by heading to Reports > Invoices on your Dines account, or by clicking here.
If you aren't VAT-registered, you'll still be charged VAT on our services, since we're VAT-registered, but you won't be able to reclaim it. This is standard across all VAT-registered service providers.
Where Can I See VAT Reports?
You'll find a range of VAT reports in the Reporting section of our app or on the web dashboard, including:
VAT Report: a summary of VAT collected on your sales.
VAT by VAT Percentage: a breakdown of sales by VAT rate.
Item Sales by VAT Rate: an overview of item sales broken down by VAT rate, excluding tips, service charges, custom partial refunds and other bill-level adjustments.
…and several more.
Every report above has filters to fine-tune it to your liking, and can be exported to CSV.
If you're a trader at a festival or event and want to see deductions taken by the organiser, you'll find them under Reports > Deductions, or by clicking here. All deductions taken by organisers include VAT. For invoices on a specific deduction, please contact the organiser directly, since we're only able to supply invoices for our own charges.
And that's everything! Thank you for reading through our FAQs on VAT. If you have any further questions, please get in touch, as our team are always happy to help. For anything relating to your specific VAT obligations or reclaim eligibility, it's always best to speak directly with your accountant, since they'll be able to help more than we can on that front.
If you have any questions or feedback, or a Knowledge Base article you would like to see, please get in touch.
