What items are exempt from the VAT? [U.K.]
Exempt goods and services
- insurance, finance and credit.
- education and training.
- fundraising events by charities.
- subscriptions to membership organisations.
- selling, leasing and letting of commercial land and buildings — this exemption can be waived.
What are 3 items that are VAT exempt?
Exempt Supplies
- Land. Many transactions involving land and buildings are exempt from VAT. …
- Insurance. Almost all insurance transactions are exempt from VAT. …
- Postal services. …
- Education and training. …
- Finance. …
- Health and welfare. …
- Investment gold. …
- Sport.
What items are not subject to VAT?
VAT exemption for goods and services
- Sporting activities and physical education.
- Education and training.
- Some medical treatments.
- Financial services, insurance and investments.
Do you pay VAT on supermarket food?
You have to charge VAT at the standard rate on any food and drink which is consumed on the suppliers’ premises or at any designated eating area. That includes retail outlets, restaurants, cafes, supermarkets, or in a paid-entry locations such as cinemas, theatres and sports venues.
What are zero rated goods and services?
Often, goods and services that are zero-rated are those that are considered necessary, such as food items, sanitary products, and animal feeds. Examples of zero-rated goods include certain foods and beverages, exported goods, equipment for the disabled, prescription medications, water, and sewage services.
What products do you pay VAT on?
VAT and duties
| % of VAT | What the rate applies to | |
|---|---|---|
| Standard rate | 20% | Most goods and services |
| Reduced rate | 5% | Some goods and services, for example children’s car seats and some energy-saving materials in the home |
| Zero rate | 0% | Zero-rated goods and services, for example most food and children’s clothes |
What items are Vatable?
Health
| Goods or services | VAT rate |
|---|---|
| Care or medical treatment provided by a qualifying institution like a hospital, hospice or nursing home | Exempt |
| Dispensing of prescriptions by a registered pharmacist | 0% |
| Health services provided by registered doctors, dentists, opticians, pharmacists and other health professionals | Exempt |
Do you pay VAT on coffee?
As long as it’s consumed away from your premises, iced coffee, iced tea, and milkshakes are zero rated. But if it’s eaten in then you have to charge VAT, because it counts as a sale in the course of catering.
Do you pay VAT on sandwiches?
VAT rules on takeaway food
Among these items are cold sandwiches – but they’re actually only zero-rated when they’re consumed off the premises. Sandwiches consumed on the premises are subject to VAT at the standard rate – hence the higher price you usually pay for dining in.
Do you pay VAT on cakes?
Unlike sweets, cakes are considered to be a staple food and therefore zero-rated for VAT. Biscuits are also zero-rated unless they are a luxury item, which usually means they have chocolate on top.
Do you pay VAT on tea bags?
As a general rule, food in the UK isn’t subject to VAT (or it is zero rated) if it is served requiring preparation or cooking. Accordingly, as per HMRC’s guidelines, Teabags and Loose Leaf Tea to which you must add hot water is zero rated for VAT.
Does bread have VAT?
The supply of bread that meets the ingredient definition under VAT legislation, is liable to VAT at the zero rate. Bread products such as, garlic bread, onion bread and fennel bread do not generally conform to the ingredient definition of bread. Therefore, they may be liable to VAT at the reduced rate.
Is there VAT on bottled water?
Cold takeaway food and drink will remain zero-rated for VAT purposes (save for the likes of potato crisps, sweets, and beverages such as bottled water and soft drinks, which are always subject to 20% VAT).
Is 5 VAT on takeaway food?
A 5% rate of VAT applies to supplies of: Food and non-alcoholic beverages sold for on-premises consumption, for example, in restaurants, cafes and pubs. Hot takeaway food and hot takeaway non-alcoholic beverages.
Is there VAT on fish and chips?
Food and drink
For takeaway sales, only hot food or hot (non-alcoholic) drinks are subject to 5% VAT. Take, for example, the sale of a bottle of beer, a cappuccino, fish and chips, a ham sandwich and a packet of crisps. If sold in a pub or restaurant everything except the beer will be subject to 5% VAT.
Do you pay VAT on cold food?
Cold takeaway food and drink is zero-rated, as long as it’s not of a type that’s always standard-rated (such as potato crisps, sweets and some beverages including bottled water).