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Where Taxpayers and Advisers Meet

VAT on Coffee

acy
Posts:2
Joined:Thu Mar 04, 2010 11:48 am
VAT on Coffee

Postby acy » Thu Mar 04, 2010 12:23 pm

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
Posts:73
Joined:Wed Aug 06, 2008 3:37 pm

VAT and Coffee Pad/Pods

Postby Eamon McNicholas » Thu Mar 04, 2010 6:26 pm

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
Posts:2
Joined:Thu Mar 04, 2010 11:48 am

Re: VAT on Coffee

Postby acy » Fri Mar 05, 2010 1:27 pm

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.


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