The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the conditions that must be satisfied before supplies of young children’s clothing can be zero-rated.
All of the following conditions must be satisfied before the supply can be zero-rated.
Further information on all of these requirements are provided below.
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.
Articles of clothing do not include accessories, haberdashery items sold separately or safety accessories that are not items of clothing. For example:
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):
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