07 September 2000
A review of VAT on children's clothing is to be held by a newly-formed joint Customs and British Retail Consortium working group.
At present, the zero rating of young children's clothing and footwear is determined with reference to a schedule of maximum sizes, detailed in VAT Notice 714A. There have been concerns raised over the operation of the zero rate. Firstly, a small number of children under 14 years of age are not receiving the benefit due to their size and secondly, the administrative arrangements are over-complex.
A review of VAT on children's clothing is to be held by a newly-formed joint Customs and British Retail Consortium working group.At present, the zero rating of young children's clothing and footwear is determined with reference to a schedule of maximum sizes, detailed in VAT Notice 714A. There have been concerns raised over the operation of the zero rate. Firstly, a small number of children under 14 years of age are not receiving the benefit due to their size and secondly, the administrative arrangements are over-complex.
At present, the zero rating of young children's clothing and footwear is determined with reference to a schedule of maximum sizes, detailed in VAT Notice 714A. There have been concerns raised over the operation of the zero rate. Firstly, a small number of children under 14 years of age are not receiving the benefit due to their size and secondly, the administrative arrangements are over-complex.
As a result, Customs and the British Retail Consortium have agreed to set up a joint working group. The group will examine and identify alternative methods for administering the zero rating which will be simpler to operate, but continue to meet the legal criterion of not including items suitable for older persons. Representations from interested parties are welcome. Written contributions should be sent to Des Farndell, HM Customs and Excise, VAT Social Exemptions Team, 4th Floor East, New King's Beam House, 22 Upper Ground, London SE1 9PJ; or e-mailed to ken.tatam@hmce.gsi.gov.uk no later than 31 October 2000.
Interim measures
With effect from 1 September 2000, certain interim measures have been introduced to simplify the schedule of maximum sizes. As a result, some changes have been made to the content of VAT Notice 714A. Details are available on the Customs website at www.hmce.gov.uk or from local business advice centres.
