Request A call Back
28 Nov, 2021 admin
Businesses with the annual turnover £85,000 are VAT registered. And same applies for the food industry. VAT on food products in UK are imposed based on nature of food products whether it’s a bakery item, hot or cold and so on. Previously the standard rate was 20% but from 1st October 2021 to 31st March 2022 the temporary reduced standard-rate is 12.5%.
Food products in UK and VAT associated to it:
- Bakery items
Bakery products are usually zero-rate. However, some bakery item is a subject to standard rate such as biscuits covered with chocolate either wholly or partially.
- Frozen items
Frozen products not edible before cooking or thaw are all zero rate. But if the frozen product is edible while it’s frozen is standard rate. For instance-Ice cream.
- Confectionery
Confectionery items such as chocolates, sweets, candies and any sweet food usually eaten by fingers are standard-rate.
- Alcoholic Beverages
Alcoholic beverages containing alcohol are standard-rate. Despite of place you consume.
- Savoury snacks
Savoury snacks which comes in a package are standard-rate. Roast potatoes, cereals, nuts and a like which we can eat directly without further cooking are some of the examples . Nuts if roasted or salted and sold loose also is a subject to standard-rate.
- Diabetic Products
Food products for diabetic are zero-rate. Such as sugar-free preserves or gluten free flour. However, confectionery with no sugar or chocolate biscuits having no gluten is standard-rate.
- Unprocessed Products
Products such as raw meat, fish, vegetables, fruits, cereals and so on are always zero rate. If you supply these products to the manufacturer as an ingredient, it’s still zero-rated.
- Catering
Foods supply in the course of catering are always standard-rate. But it must lie within the meaning of catering to be standard-rate. You can find further information in VAT Notice 709/1: catering and take-away food.
- Hot Food & Drinks
Hot takeaway food and drink that meets certain tests set out below is standard-rate (or temporarily reduced rated). Cold takeaway food and drink is zero-rate, as long as it’s not of a type that’s always standard-rate. Hot takeaway drinks are standard-rate (or temporarily reduced rated as long as they are non-alcoholic). Know more about catering, takeaway food and VAT.
- Food Supplements
Dietary supplements of a kind not normally purchased and used as food are standard rate. This includes:
- vitamin and mineral supplements of all kinds
- royal jelly products (but not regular food products such as honey which simply have royal jelly added to them)
- tablets, pills and capsules containing, for example, wheatgerm, iron, calcium, fibre, yeast, garlic, ginseng, pollen, propolis, seaweed, evening primrose, guarana or other similar herbal preparations, and powders of these other than garlic and yeast
- charcoal biscuits
- cod liver oil and other fish oils held out for sale as dietary supplements etc.
Food products (VAT Notice 701/14)
If you want to know more about the other different products and the rate associated to it, follow the link below:
Related:
Do you need any further assistance? Getting trouble which rate to apply?
Connect with us, grab your phone and please call 0203 802 7810 Krishna Dahal, or email krishna@focusaccountants.co.uk.