Vat

[jhill]

Hi All. I need some help on the following please :-

1) When purchacing Deserts for resale, is there VAT if the suplier is VAT reg ?
to include Gateaux, Fudge, Cream Slices, Tarts, Cakes etc.

2) When purchacing milk from a supplier who is VTA reg is there VAT ?
Purchaced from "Dairy Crest Ltd"

3) When purchasing newspapaers from a supllier who is VAT reg is there VAT ?

4) does reams of papaer have VAT ?

thanks ever so much.

jamie

[Devilishbird]

Hi Jamie the link below should answer all your questions on VAT:
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_InfoGuides&propertyType=document&id=HMCE_CL_001225

[purplegirl]

1) Yes
2) No
3) No
4) Yes

[jhill]

thanks purplegirl.

when you have a spare 5 mons could you please refer to the link provided by
devilish bird.

afetr going through the info provided my awnser to question 1 would be NO.


please get back to me. thier notes can be inturpreted diff.

thanks

[sarahwilson]

Theres never any VAT on food, except chocolates and you cannot claim that back. They don't make it easy do they:001_rolleyes:

[blobbyh]

thanks purplegirl... after going through the info provided my answer to question 1 would be NO.

... please get back to me. Their notes can be interpreted diff

Absolutely, since having a quick read of Notice 701/14 and the following...

2. General VAT liability rules
2.1 Food supplied in the course of catering
You must always standard-rate food supplied in the course of catering, including hot take-away food. Further information can be found in Notice 709/1 Catering and take-away food.

... I would agree with purplegirl, however having after reading 3.6 I'd agree they're zero rated but only if you're not supplying in the course of catering which seems the key point. Since you're reselling, I would say you possibly are and thus subject to VAT. Tricky one.

[purplegirl]

When we go to Costco and Macro, we always pay VAT on luxury food items such as cake and sweets. The first item all seems to be non-essential food items, which are VATable.
As far as I know, the only item of luxury food which ever came into question was Jaffa Cakes, which were deemed VAT exempt.
So, I disagree with Sarah and agree with Robert agreeing with me! :cool2:

[deanshepherd]

Purplegirl is right and wrong..

..she is right that there is VAT on cakes but it is at the zero-rate!

Sweets are confectionery and thus standard rated, cakes are generally zero-rated (with a few exceptions). Maybe it is the exceptions that you are buying in bulk from Costco!!

I would suggest that fudge is confectionery and therefore standard-rated, tarts may also be.

Blobby is correct that if they are supplied in the course of catering then everything is standard-rated but presumably you are buying from a wholesaler and not a caterer.

[purplegirl]

Thanks Dean, did not realise that about cakes.

[sarahwilson]

As I don't work in a field that resells these things, its pretty black and white for me on the rare occasions we buy them in. I never realised how complicated the rules were for cake!!:confused1:

[claudialowe]

It's why Nestle?? insist that jaffa cakes are cakes not biscuits, so that they are zero not standard rated.

They spent loads of money arguing with the then R&C getting them to finally agree their point.

Claudia

[deanshepherd]

If in doubt, let them go stale..

If I recall correctly, the whole basis of United Biscuits(?) argument was that cakes go hard when stale, whereas biscuits go soft!

[purplegirl]

It's why Nestle?? insist that jaffa cakes are cakes not biscuits, so that they are zero not standard rated.



McVities! :001_tt2:

[deanshepherd]

McVities is a brand name of United Biscuits!

:001_tongue:

[purplegirl]

OK, but it's not Nestle, which was what I was correcting!