The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
If a business is supplying products designed to meet specific dietary requirements for people with disabilities or who are dieting etc, the VAT treatment will depend on the exact nature of the product supplied. This guidance note provides an overview of the VAT treatment of some typical specialised food products.
If the dietary supplement is not considered to be purchased and consumed as food, it will be liable to VAT at the standard rate. The following is a list of the typical dietary supplements that are liable to VAT:
These products are usually supplied in liquid form, or as a powder which is intended to be mixed with liquid. These can be products which are intended to be given intravenously (parenteral).
If the product is intended to meet the nutritional rather than medical needs of the invalid, they can be zero-rated (subject to the normal rules). Liquid foods intended to build up patients can also be zero-rated.
If a business supplies specialised food, such as bread, pasta, sugar free preserves and gluten free flour and cakes, the supply can be zero-rated.
However any specialised confectionery or gluten fee chocolate biscuits are liable to VAT in the same way as the normal products of this type.
If a business supplies food that has
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