VAT on Coffee

[acy]

I understand that VAT on Coffee it zero rated (where not a catering supply, VAT Act ’94, schedule 8, group 1), but I can see that many online stores are charging VAT on their sales of coffee pads/pods. Can anyone shed any light on this?

[Eamon McNicholas]

Coffee is zero-rated, sch.8 pt1 as a specific named override to the exceptions.

But what please is a coffee "pad / pod" ?

Eamon Mc Nicholas
Tax Barrister

www.EamonMcNicholas.com

[The above is not to be taken nor used as specific advice]

[acy]

A coffee pad is equivalent to a tea bag. It's used to hold the coffee and is typically designed to work in a specific coffee making machine. So, you would buy Senseo coffee pads to work with a Senseo coffee machine, and discard the pad/pod once the coffee drink has been made.