Discussion
there are all sorts off oddities
as a fish and chip shop owner i have to charge VAT on hot chicken. Tesco (for some reason) doesn't have to charge VAT on hot freshly cooked chicken.
VAT isn't charged on staple foods (anything with refined sugar isn't a staple food basically), however during the second world war fish and chips were neither rationed nor VATable- changed afterwards.
cakes AREN'T vatable, but biscuits are (on the grounds that biscuits are an unnecessary luxury, but cake is a staple). There is the rather famous case of the jaffa cakes being told to pay VAT and going to court about it. They produced a huge Jaffa CAKE and HMCE was forced to back down. However as jaffa cake is not a generic term for a "type" of cake (like battenburg etc) youcan now flog anything that looks like a jaffa cake as a jaffa cake! bet you didn't also know that the orangey bit on a jaffa cake is actually mostly apricot.
as a fish and chip shop owner i have to charge VAT on hot chicken. Tesco (for some reason) doesn't have to charge VAT on hot freshly cooked chicken.
VAT isn't charged on staple foods (anything with refined sugar isn't a staple food basically), however during the second world war fish and chips were neither rationed nor VATable- changed afterwards.
cakes AREN'T vatable, but biscuits are (on the grounds that biscuits are an unnecessary luxury, but cake is a staple). There is the rather famous case of the jaffa cakes being told to pay VAT and going to court about it. They produced a huge Jaffa CAKE and HMCE was forced to back down. However as jaffa cake is not a generic term for a "type" of cake (like battenburg etc) youcan now flog anything that looks like a jaffa cake as a jaffa cake! bet you didn't also know that the orangey bit on a jaffa cake is actually mostly apricot.
It's mandatory for all EU countries to put a VAT system in place when they join.
It's such a good way of collecting revenue, that a number of non-EU countries have adopted it as well. My hunch is that the UK would have a VAT system anyway whether it was in the EU or not.
As I said earlier, it merely replaced an older form of Sales/Purchase tax - which was almost as complex.
It's such a good way of collecting revenue, that a number of non-EU countries have adopted it as well. My hunch is that the UK would have a VAT system anyway whether it was in the EU or not.
As I said earlier, it merely replaced an older form of Sales/Purchase tax - which was almost as complex.
Eric Mc said:
Nothing so simple.
All eat in restaurant food is charged at 17.5%
All takeaway hot prepared food is 17.5%
Most shop bought basic foods are 0%
There are lots of "food stuffs" (such as confectionaries) which are 17.5%
Instant coffee (ie in a jar) isn't VATable according to my friendly VAT inspector, who proudly required the 65p I had claimed back.All eat in restaurant food is charged at 17.5%
All takeaway hot prepared food is 17.5%
Most shop bought basic foods are 0%
There are lots of "food stuffs" (such as confectionaries) which are 17.5%
smartie said:
cold takeaway food, ie ham butty, is zero rated. Clever innit!
Do you remember when this was brought in one fish & chip shop owner was selling salt & vinegar for £1 and you got free fish & chips! Don't think the scam lasted long!
Does this mean microwaveable meals are zero rated. M&S must be making a killing selling microwave meals at £4, especially if they don't have to pay VAT.Do you remember when this was brought in one fish & chip shop owner was selling salt & vinegar for £1 and you got free fish & chips! Don't think the scam lasted long!
Edited by smartie on Friday 22 June 22:37
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