Zero rating on food – unexpected results

Key points

• The definition of ‘food that should not be subject to VAT in 2023’ is effectively based on ‘food that was not subject to purchase tax in 1973’.
• The rules in VATA 1994 Sch 8 Group 1 include seven ‘excepted items’ that are ‘food etc’ but are taken out of zero rating and seven ‘items overriding the exceptions’.
• The most famous VAT case of all is about the difference between a chocolate-covered biscuit (excepted item) and a chocolate-covered cake (excluded in the wording of the excepted item).
• ‘Food for human consumption’ seems fairly uncontroversial but there have been cases about aphrodisiac products edible flowers and aloe gel food supplements.
• Liability of take-away food sold warm – aftermath of George Osborne’s pasty tax Budget.
• Many problems in VATA 1994 Sch 8 stem from a political determination to hold on to the limited permission the UK had to...