More on Food and VAT

Some of you will have read previously about smoothie maker Innocent and its attempt to get its crushed fruit drinks exempted from VAT.

The co-founder of the drink manufacturer had stated it that is was absurd that fast food items are excused from VAT whilst his own company drinks which contain healthy components are fully taxed.

This is based on the well known UK tax rules that consumers do not have to pay VAT on food and drinks that are seen to be “essential” but they must pay the indirect tax on luxury items such as fruit juices.

Some of you reading this may be right in thinking that the VAT rules relating to food may need some rapid review.