Size matters Part III – Bay plants are VAT free – as long as they are no bigger than 50cm and they have not been clipped or shaped.
Size matters Part III – Bay plants are VAT free – as long as they are no bigger than 50cm and they have not been clipped or shaped.
HMRC have updated VAT Notice 701/38 Seeds and plants that can be zero-rated. This Notice explains how to zero rate supplies of of seeds and plants which are used to grow food for human consumption. The supply of most basic foodstuffs for human or animal consumption is zero-rated. Plants and seeds used for the production of foodstuffs are also zero-rated depending on how they are held out for sale. The Notice explains when the following items can be zero-rated:
The main amendments have been made to paragraph 3.5 – Trees and fruit bearing shrubs.
Any businesses supplying such goods (garden centres, nurseries etc) should ensure that the available zero rating is applied as widely as possible within these rules.