If you buy a flapjack* from a vending machine in the corridor at work it is VAT free. However, if you buy the same product from a machine in the staff canteen it will be standard rated.
* Of course, zero rating only applies to a “traditional” flapjack and not cereal or energy/sports nutrition bars…
Fruit pulp is zero-rated, but fruit juice is standard-rated.
The Irish Supreme Court ruled that the bread sold by the restaurant chain Subway was too sweet to be classified as bread and that the high sugar content meant that it could not be zero rated.
Toffee apples are zero-rated, however, any other fruit which is covered in sugar (or toffee) sold as confectionary is standard rated.
In the current election the Liberal Democrats’ manifesto stated that they would apply zero-rating to children’s toothbrushes and toothpaste. Whether this impacts the money left by the tooth fairy remains to be seen…
Banana and strawberry flavoured Nesquik drinks are standard rated, but chocolate flavoured Nesquik is zero rated.
The sale of a dead horse is VAT free, but a live horse is standard-rated.
(This is not a recommended tax planning scheme).
I am often asked as a VAT person whether I find tax boring. I do often find it frustrating, some of the mechanics arcane and dealing with HMRC something of a challenge (putting it politely). However, I have been advising on the tax for getting on for 30 years, so it must have its attractions…
I think the best way to put it is by quoting K Maurer:
Tax is not boring. Tax is politics. Tax is geography. Tax is social issues. Tax is financial literacy. Tax is financial empowerment. Tax is problem solving. Tax is helping others create a stronger sense of independence. Tax is anything but boring!
I would also add that tax is challenging as a practitioner, it is also; evaluating information, arriving at creative solutions, hand-holding, standing up for rights, explaining, challenging views and assumptions and…keeping on top of a rapidly changing legislative/legislation and commercial landscapes.
It can also be very silly – as my serious of VAT: Did you knows illustrate.
Some of my other favourite tax and business quotations here.
Dead mice, rats and day-old chicks sold for feeding to exotic pets may be zero-rated.
Where goods are located in a shop can affect the VAT treatment. Nuts sold in the bakery aisle are VAT free, but those sold with snacks or confectionary are standard rated.