Find out if you know your leaflets from your bus tickets!
You certainly know your onions. And Jaffa Cakes!
Someone needs to sharpen up their VAT knowledge!
#1. Dry Roasted Pistachios
Dry Roasted Pistachios are classified as processed luxury items which are not essential. Pistachios in shells are not processed and are 0% rated.
#2. Jaffa Cakes
Jaffa cake are classed as cakes and are 0% rated. If they were classed as biscuits, they would be 20% rated.
Doritos are primarily corn-based which makes them 0% VAT rated. If they were potato based the VAT rate would be 20%.
Audiobooks are 20% VAT taxable whether supplied in a physical or digital format. Electronic versions of books that can be read or looked at are 0% VAT rated.
#5. Bus Tickets
Public transport bus and train tickets are zero-rated.
#6. Steel Toe Cap Shoes (PPE)
Safety equipment is zero-rated. This includes safety clothing, builder’s helmet, work boots etc.
#7. Takeaway Food
If takeaway food is hot it’s standard 20% VAT rated. If it is meant to be served cold takeaway food is 0% rated.
From 15th July 2020 until 12th January the VAT rate on eat-in or hot takeaway food has been temporarily reduced from 20% to 5%.
#8. Business Cards
Business Cards are standard VAT rated.
#9. Flyers and Leaflets
Flyers and Leaflets are generally zero rated (VAT exempt), but if your flyer or leaflet is offering a discount on product or service then it will be 20% VAT rated.
#10. Gas and electricity cost (for business)
Gas and electricity used for business are standard VAT rated. Any residential energy will have reduced VAT rate of 5%.