Salted nuts are standard rated, but packets of nuts which are still in their shells are VAT free.
Salted nuts are standard rated, but packets of nuts which are still in their shells are VAT free.
All alcoholic drinks are always standard rated. Alcohol-free beer and wines are similarly subject to VAT.
Around 50% of businesses do not recover VAT incurred overseas and there is an estimated $5 billion not reclaimed each year.
Energy saving: Insulation, solar panels, wind turbines, wood-fuelled boilers and air-source heat pumps are subject to a reduced rate of VAT at 5%, but the installation of secondary or double glazing is at the standard rate of 20%.
Crisps – spot the difference: Doritos, Monster Munch, Wotsits and poppadums are standard rated, however Pringles, Skips and Twiglets, are VAT free.
In Italy, coffee substitutes are subject to a reduced VAT rate of 10%. But bizarrely, regular coffee is subject to the standard VAT rate of 22%.
Kangaroo steak is sold as food in shops – food is zero-rated, but the sale of live kangaroos is standard rated.
Wigs for teddy bears are subject to Customs Duty, but the Upper Tribunal ruled that ‘realistic” hearts used for a Build-A-Bear toy are duty free.
Popcorn is standard rated. DIY popcorn – corn which is popped in a microwave is VAT free. Don’t be lazy! 🍿
Sweetened rice cakes are zero-rated, but savoury flavoured ones are VATable.
BUT… The problem area is salted rice cakes. Lightly salted cakes are considered to require further preparation before consumption (and are therefore zero-rated) whereas more heavily salted rice cakes do not and are standard rated. However, there is no guideline as to where this borderline falls .