Value Added Tax

Food ― overview of zero-rating

Produced by Tolley
  • 22 Dec 2021 18:47

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

  • Food ― overview of zero-rating
  • Scope of zero-rating for food
  • Practical points for businesses supplying food

Food ― overview of zero-rating

This guidance note provides an overview of the zero-rating for ‘food’ which is found in VATA 1994, Sch 8, Group 1.

For more in-depth commentary on the legislation and case law, see De Voil Indirect Tax Service V4.217.

Scope of zero-rating for food

When considering whether zero-rating applies, the starting point is that there is broad relief for all food (which includes drink). This broad meaning of food is described in the Food ― what is food? guidance note.

However, this broad zero-rating for food is subject to a number of important exceptions. These exceptions are taken out of the scope of zero-rating and therefore will generally be standard-rated (or in some cases the temporary reduced

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