Quote:
Originally Posted by maviczap
Some food is subject to VAT, some is not, its a very complex area of VAT.
The Vat man versus McVities in the jaffa cake saga is a good example, Vat man says its a biscuit so liable to vat, McVities says its a cake so not liable. VAT man won the arguement in court I think
Plus not all food is liable to 20% VAT, some is rated a a 5% VAT rate.
If you buy a chocolate muffin at a coffee shop and eat it there, you pay VAT. If you take it away and eat it you don't pay VAT
Although the trader may pocket the VAT he doesn't charge you as a nice fat profit.  |
Plain biscuits are also tax free;
Under UK law, no
Value Added Tax (VAT) is charged on plain biscuits and cakes — they are "zero rated".
Chocolate covered biscuits, however, are subject to VAT