Young children’s clothing

By Tolley
VAT_tax_img10

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Young children’s clothing
  • Conditions
  • Uniforms
  • Cloth kits
  • Services

This guidance note provides an overview of the conditions that must be satisfied before supplies of young children’s clothing can be zero-rated.

Notice 714 ; VCLOTHING1100; VATA 1994, Sch 8, Group 16, Item 1; De Voil V4.287 (subscription sensitive)
Conditions

All of the following conditions must be satisfied before the supply can be zero-rated.

VCLOTHING1150; VCLOTHING1250

The item:

  • must be an article of clothing or footwear
  • must not be made of any fur (although there are exceptions)
  • must be designed to be worn by young children, and
  • must only be suitable for wearing by young children

Further information on all of these requirements are provided below.

Article of clothing

An article of clothing includes the obvious items, such as shirts, skirts, trainers, etc. However it also includes certain safety items, including sailors lifejackets etc, if they have some function and form as clothing.

VCLOTHING2000; VCLOTHING2400 Mothercare Ltd and Little Rock Ltd

Articles of clothing do not include accessories, haberdashery items sold separately or safety accessories that are not items of clothing. For example:

  • buoyancy aids and reflective armbands
  • buckles, buttons, zips and other types of fastening
  • sew on items, patches, badges and iron-on items, etc
  • ear and hand muffs

Baby clothing can often cause confusion as it is possible to zero rate the following items providing they are held out for sale correctly (this list is not exhaustive):

  • bibs including plastic bibs with built in trays

More on Zero-rated supplies: