VAT on Delivery Commissions Guide
Enter your total weekly order value, the split between hot food (standard-rated) and cold food (zero-rated), and your average commission rate to see how much commission VAT you can actually reclaim.
How this tool works
VAT on delivery commissions is one of the most commonly miscoded items in restaurant accounting. Platforms charge 20% VAT on their commissions — this is input tax that VAT-registered businesses can reclaim in full, because zero-rated food (cold takeaway items, certain bakery goods) is still a taxable supply and does not restrict recovery the way exempt supplies would. What your sales mix does affect is the output VAT split on the sales themselves, which needs apportioning by hot/cold rate. Most generalist accountants record delivery sales net of commission and miss the output-VAT split entirely. This tool calculates the correct split based on your actual sales mix and shows the annual cost of getting it wrong.
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