VAT on a Tea Based Soft Drink

[owengreenlady]

Hi Ladies and Gents. I was looking for some advice please. We produce a Sparkling Tea based beverage where Tea is the number 2 ingredient after water.

Should it be eligible for Zero VAT?

I was using this case as an example:

http://www.taxpartnersuk.com/news_detail.php?news_id=80

[pawncob]

Are you manufacturing this item or retailing it?
If the former it's probably zero rated. If the latter it's probably standard rated.