The Value Added Tax (VAT) on food and drink in the UK can vary depending on the specific items being purchased. Here are some general guidelines:
Standard rate VAT: The standard rate of VAT in the UK applies to most goods and services, including alcoholic beverages and certain types of food and drink. As of September 2021, the standard rate was 20%. This means that 20% of the product’s price goes to the government as VAT.
Reduced rate VAT: A reduced rate of 5% was applied to certain items, including certain types of food and non-alcoholic drinks. This lower rate is usually intended for essential items and items considered as necessities.
Zero rate VAT: Some specific food items, such as most basic foodstuffs like bread, vegetables, fruits, and most types of milk, are classified under zero-rated VAT. This means that while they are subject to VAT, the rate is set at 0%, effectively making them exempt from the tax.
Exempt items: Some types of food and drink may be entirely exempt from VAT, meaning they are not subject to any VAT at all. Examples of exempt items include certain types of bread, some baby foods, and certain types of tea and coffee.
Keep in mind that tax regulations can change over time, and it’s essential to check the latest updates from official sources or consult with a tax professional to get the most up-to-date information on VAT rates for food and drink in the UK.
This page is not actively updated, some information may be out of date and should not be used for professional advice.