Is it true in the uk that we pay VAT on biscuits but not on cakes ?!
Is it true in the uk that we pay VAT on biscuits but not on cakes ?
Answers:
Please clarify what you mean by "no VAT"? Do you mean exempt or zero rated? If you mean zero rated you are paying VAT but at zero percent.
Both biscuits and cake have VAT added in the UK. The cake is zero rated (0%) and biscuits are standard rate (17.5%)
Who said VAT was meant to be simple?
Source(s):
VAT notice 701/14
I used to be a VAT consultant.
Yes, it is true, and we don't pay VAT on Jaffa Cakes because they're CAKES. Anyone who argues that they're biscuits, you are wrong and this proves the point.
Lime Jaffa Cakes? I approve.
We dont pay VAT on essentials milk, rice, bread and things like books. Childrens clothes and shoes.
For some reason cakes are included
http://www.channel4.com/4money/taxpensio...
its other way round i was able to buy cake products no vat biscuits +vat mcvities where in row because of Jaffa cakes
lol and sanitary products are classed as a luxury...... as if they really think i would choose to bleed continually for days on end,...... the ignorant swines!
It is true in some cases! No idea why but I used to work in the Sales Planning department for a crisps and snacks distribution firm and working out the prices was often a nightmare for this very reason. Sometimes savoury biscuits are not vatable as well.
Thinking about it, it might have something to do with the weight of the product??
I'm wondering what made you ask this question!
The UK does NOT pay VAT on food at all.
Where have you been for the last fifteen years ???
K is right in saying we don't pay VAT on food -- but the problem is how to define food.
Just because you eat it, doesn't make it food as far as tax is concerned. Also we pay VAT on food consumed on premises. So if you go to McDonalds you pay VAT on your burger if you eat it inside but tax free if itis take away (which is why thay ask 'eat in or take away?'
Snacks are not defined as food for VAT, thus icecreams, crisps etc are VATable. And biscuits are snacks thus the argument about whether Jaffa Cakes are a cake (VAT free) or a biscuit (VATable) was taken to court.
In Trinidad and Tobago we pay VAT on cakes and not on biscuits.
It's probably very true. As we have here in the U.S. Certain products that contain sugar (which is expensive) will normally be priced higher or even taxed because of the costs involved. Families that get financial help from government agencies here, can use food stamps for almost any food type,,that is,,unless it's heated and ready to serve. They cannot be purchased with food stamps. I'm sure that most countries have similar laws, rules and proceedures. Remember, they want you healthy because the costs of medical help is far greater than if you'd been eating the right stuff and dont require medical help :) Larry.
Another confusing one is that you don't pay VAT on bottled water unless it's fizzy.
& you'll pay partial VAT at McDonalds if you choose to stay in rather than take out.