The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.
This guidance note explores the exclusion from the zero-rating for food that applies to alcoholic and other drinks, sports drinks and certain products used in home-brewing.
For an overview of the scope of zero-rating for food in VATA 1994, Sch 8, Group 1, see the Food ― overview of zero-rating guidance note.
In-depth commentary on the legislation and case law surrounding the exclusion from zero-rating for these drinks and drink related products can be found in De Voil Indirect Tax Service V4.219.
There is an exclusion from zero-rating for alcoholic and other ‘beverages’ so such products will generally be standard-rated for VAT purposes.
The legislation which provides the basis for the exclusion of certain alcoholic and other drinks from zero-rating uses the word ‘beverage’. This term is not defined in the legislation itself. Sometimes it can be a challenge to decide whether a product is a ‘beverage’ or something else (for example drinkable food).
When considering what a beverage is for VAT, HMRC generally takes an approach which was seen in the Tribunal case of Bioconcepts. This approach (or test) suggests that a beverage is a drinkable liquid which is commonly consumed and which fulfils one or more of the following:
it is characteristically taken to increase bodily liquid levels
it is taken to slake the thirst
it is consumed to fortify
it is consumed to give pleasure
Bioconcepts Ltd v C & E Comrs  VAT Decision 11287; VFOOD7520
It is worth noting
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