Some EU member states, including the UK, have a zero rate which was agreed as part of their EU Accession Treaty. For example, in the UK most 'basic' food stuffs are zero rated. However, the UK is no longer able to add to the zero rate categories, and the minimum VAT rate that can be applied to any new category that the Government seeks to reduce rate is 5%.
The 5% VAT reduced rate applies to the provision of the following goods and services:
2. Children's car seats, booster seats and booster cushions
3. Smoking cessation products
4. Sanitary protection products
5. Mobility aids for the elderly (installation)
6. Renovation / Alteration of certain, empty residential buildings
7. Converting certain premises into different living accommodation
8. Energy saving materials
If you are unsure if a supply you are about to make should or should not be made at the reduced rate of 5% please contact us for clarification.
Disclaimer – Please note: The ideas shared with you in this article are intended to inform rather than advise. Taxpayers’ circumstances do vary and if you feel that tax strategies we have outlined may be beneficial it is important that you contact us before implementation. If you do or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
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