Time to zero rate VAT on Chocolate?

Standard-rated confectionery includes, chocolates, sweets and candies, chocolate biscuits and any other “items of sweetened prepared food which is normally eaten with the fingers” – and which must be both sweetened and have some sweetness to the taste.

Zero-Rated

Cakes including sponge cakes, pastries, eclairs, meringues, flapjacks, lebkuchen and marshmallow teacakes, Chocolate spread, cocoa powder, liquid chocolate icing, chocolate couverture, and chocolate chips and chocolate body paint.

Standard-Rated

Chocolates, bars of chocolate including those containing nuts, fruit, toffee, or any other ingredients, diabetic chocolate, liqueur chocolates and similar sweets.

Recently the makers of Jaffa cake persuaded a VAT tribunal to zero rate their “cakes”; now with increasing evidence that chocolate is not just an indulgence but a rich source of health enhancing free radicals, we think it’s time to treat chocolate as an essential food.
via HM Revenue & Customs.

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