Is VAT chargeable on biscuits?

In the UK, VAT is not charged (0% rate) on most plain biscuits, as they are considered2basic food items. However, VAT at the standard rate (20%) is charged on biscuits that are wholly or partly covered in chocolate, or a product similar in taste and appearance.

Do you pay VAT on biscuits?

Under UK law, VAT on cakes and biscuits is set at 0%. However, crucially, the law states that if a biscuit is partly or wholly covered in chocolate then it is to be taxed at the standard rate.

Do snacks have VAT?

Do you pay VAT on foodstuffs? In the UK, most necessity items such as bread, milk, vegetables and others are exempted from VAT. But it is standard on luxury items like ice cream, snacks, and fizzy drinks at 20% VAT. VAT is also charged on meals prepared at restaurants and almost all takeaway food.

What items don't pay VAT?

Some examples of VAT-exempt goods and services are:

• financial services, investments and insurance.
• garages, parking spaces and houseboat moorings.
• property, land and buildings.
• education and training (excluding private schools)
• healthcare and medical treatment.
• funeral plans, burial or cremation services.
• charity events.

Is VAT on pizza?

Intended consumption – Food and drinks intended to be consumed while still hot, such as pizza, teas and coffees, are categorised as standard-rated VAT as they are designed for immediate hot consumption.

Crunch Time For McVitie's In Biscuit Battle With HMRC

Is chocolate VAT exempt?

Do You Pay VAT on Sweets? Yes. Confectionery, including sweets, chocolate bars, and candy, is subject to 20% VAT.

Is VAT charged on coffee?

Whilst coffee products used to prepare coffee, for example, instant coffee or ground/whole beans are zero-rated, coffee purchased as a hot drink from a café, restaurant or similar establishment, is subject to VAT at the standard rate of 20%.

Do you pay VAT on bread?

Although most traditional bakery products, such as bread, biscuits and cakes, are zero-rated, some confectionery is standard-rated including: biscuits wholly or partly covered in chocolate (or some product similar in taste and appearance)

What are three items that are VAT exempt?

Healthcare: Medical services, hospital care, and the supply of certain medical products may also be exempt from VAT. Financial services: Many financial services, like insurance and banking, are VAT-exempt. Charitable activities: Donations and activities carried out by registered charities may be exempt from VAT.

Is there VAT on popcorn?

VAT rules state that any food that is puffed up is a luxury and would therefore be standard rated. So any popcorn that you buy that is already made would have VAT charged on it. However, if you need to cook the popcorn yourself, it is no longer a luxury and would be zero rated.

Are biscuits classed as food?

A biscuit is a flour-based baked food item.

Do biscuits have GST?

Taxable foods and beverages

all takeaway hot food and beverages. any products not for human consumption. bakery products, such as cakes, pastries, pies, sausage rolls, bread and bread rolls with a sweet filling or coating. biscuits, crispbreads, crackers, cookies, pretzels, cones and wafers.

Which foods are zero VAT?

All unprocessed foods for human consumption, including raw meat and fish, fruit and vegetables, cereals, nuts, pulses and culinary herbs are zero rated.

Is VAT on cakes or biscuits?

This means that even if the cake is covered in chocolate, it will always remain exempt from VAT. However, if a biscuit is wholly or partly covered in chocolate, it will be taxed at the standard VAT rate of 20%.

What is the tax on biscuits?

The 5% rate usually applies to those biscuits that are either unbranded or considered essentials; however, most branded and luxury biscuits fall into the 18% tax slab.

Is there VAT on milk?

Exceptions that are zero rated include milk and milk drinks, tea, maté, herbal tea, coffee and cocoa, preparations of yeast, meat and egg.

Do McDonald's charge VAT?

The price of menu items available for McDelivery also differs to the price of menu items available in McDonald's restaurants. All prices include VAT at the current UK rate.

How much is a VAT of milk?

Milk is considered to be an essential food item and is, therefore, zero-rated (0% VAT).

Is there VAT on chicken?

In WM Morrison Supermarkets Ltd v HMRC [2025] TC09722, the First Tier Tribunal (FTT) found that rotisserie chickens were a supply in the course of catering, and therefore subject to VAT at 20%, as they were provided to customers in packaging that retained heat.

Is there VAT on alcoholic drinks?

Alcoholic drinks are charged the standard 20% VAT rate. Whether you are buying a pint at your local pub, a bottle of wine from the supermarket, or spirits from an off-licence, VAT is already included in the price you see. Businesses selling alcohol collect this VAT on behalf of HMRC.