What VAT rates apply to food and drink?

Updated on April 16, 2022

Value-Added Tax (VAT) is levied on a wide range of food and beverage products for human consumption (VAT). The type of food or drink involved determines this.

Tax treatment of food and drink is further explained in additional guidelines.

What VAT rates apply to bread?

Bread may be subject to Value-Added Tax (VAT) at a zero or reduced rate depending on where it is sold.

The zero rate of VAT applies to the supply of bread that fits the definition of an ingredient under VAT legislation. Garlic bread, onion bread, and fennel bread are all examples of bread that does not meet the concept of bread as an ingredient. They are all bread products. Consequently, they may have to pay VAT at a lower rate.

Bread’s VAT status is explained in further depth in additional guidelines.

What VAT rate applies to bakery products?

The decreased VAT rate applies to the supply of flour or egg-based bread items.

Tax treatment of food and drink is further explained in additional guidelines.

Tax and Duty Manual VAT on Food and Drink – Wholesale/Retai

VAT treatment of food and drink supplied by
wholesalers and retailers

The VAT Consolidation Act 2010’s paragraph 8 and paragraph 3 in Schedule 3 should be read in conjunction with this text.

Tax and Duty Manual VAT on Food and Drink – Wholesale/Retail
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Table of Contents
Introduction ……………………………………………………………………………………………………3
1. What is food? …………………………………………………………………………………………….3
2. What products are taxable at the zero rate? ………………………………………………….3
2.1. Milk and milk-based drinks…………………………………………………………………..3
2.2. Tea and Coffee……………………………………………………………………………………4
2.3. Baby food…………………………………………………………………………………………..4
3. What products are taxable at the second reduced rate? …………………………………4
4. What products are taxable at the reduced rate?…………………………………………….4
4.1. Flour or Egg based Bakery Products………………………………………………………5
4.2. Biscuits………………………………………………………………………………………………5
5. What products are taxable at the standard rate?……………………………………………5
5.1. Savoury products………………………………………………………………………………..6
5.2. Confectionery products……………………………………………………………………….6
5.3. Drinks………………………………………………………………………………………………..6
6. Vending Machines………………………………………………………………………………………7
7. Takeaways…………………………………………………………………………………………………7
7.1. Rate of VAT applicable…………………………………………………………………………7
7.1.1. Combination meal deals ………………………………………………………………………8
8. Summary Table ………………………………………………………………………………………….8

Introduction

This document explains how VAT is applied to the sale of food and drink for human consumption at the wholesale or retail level.
The Revenue’s guideline on Restaurant and Catering Services, Bread and Food Supplements contains information on how VAT is applied to these services, as well as bread and food supplements themselves.

1. What is food?

A food is any material that is considered to be normal food for human consumption by the average consumer and is branded and presented as such.
Tobacco, cosmetics, tinctures, or other products including food as a component are all examples of foods that are not considered to be “medicines.”
In addition to their nutritional worth, foods are consumed for a variety of reasons that are not restricted to taste, such as their texture or colour.

2. What products are taxable at the zero rate?

most breads are exempt from VAT under the zero-rate rule. ”
A variety of dairy products such as butter, cheeses, eggs and milk
cereals ” infant food
A variety of condiments are available.
Flour fruits (fresh or canned, dried or dehydrated) herbs (fresh or canned, dry or dehydrated) meat pasta pastes…
Prepared or extracted from meat, yeast, or egg products;
non-drinkable tea and coffee and vegetables (fresh and frozen).

2.1. Milk and milk-based drinks

Taxes on milk products, as well as those derived from it, are exempt from VAT. Alternatives to milk might also be zero-rated thanks to revenue. Milk replacements including oat, almond, and soy milk are all given a 0 rating.
Despite this, Revenue does allow milk-based drinks to be zero-rated, as long as the milk component accounts for at least 50% of the total amount. There must be a way to accurately measure the materials. Drinks based on milk substitutes are likewise exempt from this rule.

Ergogenic aids, on the other hand, are exempt from the zero rating because they are sold with the express purpose of enhancing athletic or physical performance. Such a product is subject to the regular VAT charge.

2.2. Tea and Coffee

Non-drinkable versions of the following items are exempt from the tax:
Drinks: Tea & Herbal teas
The following are some of the products that can be made from tea and herbal tea:
Coffee
Alternatives to roasted coffee, such as chicory and others
Preparations and extracts derived from cocoa, coffee, chicory, and other roasted coffee replacements are included.

2.3. Baby food

Baby food and beverages that are clearly labelled as such are subject to a zero-percent tax. If not, the normal rate will be charged.

3. What products are taxable at the second reduced rate?

VAT is charged at a reduced rate on the second supply of food and drink that has been heated, that has been kept heated after cooking, or that has been served while still warm after cooking. Tea, coffee, and take-out cuisine are all examples of hot beverages included in this category.

4. What products are taxable at the reduced rate?

Cakes and other bakery goods made using flour or eggs are exempt from the standard VAT rate.
wafers ” and ” biscuits ”

Wafers and biscuits that are completely or partially covered or decorated with chocolate, as well as savoury items and chocolates, sweets, and other confectionery, are not included.

4.1. Flour or Egg based Bakery Products

For VAT purposes, the following features of bakery goods must be present:
Based on flour or eggs.
During the manufacturing process, dough is created.
Usually baked or required to go through the baking procedure.
The reduced rate of VAT applies to supplies of bread products that do not meet the definition of bread. Croissants, cheese-breads, cheese bagels, brioche, and crispbread are all examples of this type of product.
Doughnuts that are fried qualify for the reduced tax rate because they are considered bakery products.

4.2. Biscuits

The moisture level of a product must be less than 12 percent to be classified a biscuit for VAT purposes. Cakes are defined as products that contain more than 12 percent moisture.

Biscuits that have been partially or completely covered or adorned with chocolate or another product

The standard rate applies to foods that are comparable in taste and appearance.

Only if an assortment of biscuits is offered together will the reduced rate apply.

The chocolate biscuits’ weight does not exceed 15% of the total weight of the cookies.

assortment. The normal rate will apply otherwise.

5. What products are taxable at the standard rate?

The normal rate of VAT is applied to certain food items that are not covered by the zero or reduced rate, such as:
Ice cream, frozen desserts, frozen yoghurts, and similar frozen items, as well as prepared mixes and powders for preparing them.
Products with a salty flavour.
Potato chips, sticks, and puffs, as well as comparable goods manufactured with potato, potato flour, or potato starch.
Salted or roasted nuts, popcorn
Biscuits and wafers that have been covered or adorned in chocolate or a similar product, in whole or in part.
Chocolates, sweets, and other confectionery of all kinds are available.
Fruits crystallised in a glace

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5.1. Savoury products

Savoury items manufactured from cereal or grain, or flour or starch generated from cereal or grain, pig scratchings, and similar products are subject to VAT at the regular rate when sold for human use without further preparation.

There is no limit to the kind of baked or prepared goods that can be used in this way.

“Healthy” items are excluded. There is no mention of a weight or an ingredient.

to designate a product as savoury These goods come in a variety of sizes.

flavour, as well as the amount of salt, sugar, and fat in the dish

Snack meals that fit under this category, on the other hand, are often those that have a high sugar content.

following characteristics:

 they are savoury

 they are eaten and marketed as a snack

 they are made from grains, flour or animal fats/products

5.2. Confectionery products

All of the following features are included in the term “confectionery,” which is used to describe a broad range of confectionery products:
Confectionery items typically come in a variety of shapes and flavours, and this one is no exception.
To be consumed as a snack. • The packing approach is comparable to other confectionery goods
This is not a comprehensive list.

5.3. Drinks

Most alcoholic beverages, including those listed below, are subject to the usual VAT rate:
 alcohol
water packaged for consumption
Juices made from fruits and other fruit-based beverages
Vegetable juices and other consumable beverages made from their juices
Products for the creation of beverages, such as liquid syrups, concentrates, essences, powders, and crystals

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6. Vending Machines

Vending machine food and drink is a supply of products, hence the VAT rate is the same as it would be for a conventional good.

7. Takeaways

Supplying commodities rather than restaurant services is the norm when it comes to takeaway food and drink from an establishment like a restaurant or food truck.
The provision may not be a restaurant service if the following factors are present:
In addition to the lack of waiters, there is also a lack of table service, a lack of enclosed spaces suitable for the consumption of meals, no cloakrooms or lavatories, and no tableware, furniture or place settings.
In the absence of human interaction, counters that allow a limited number of consumers to eat on the spot will not modify the supply.

7.1. Rate of VAT applicable

The second reduced rate of VAT applies to the supply of hot takeaway food. This includes food that has been heated, kept warm, or served hot. In addition to heated bread, bagels, paninis, and wraps containing hot fillings, hot sandwiches include cold bread and cold bread and bagels containing hot fillings.
The 0% rate of VAT applies to the sale of cold takeaway food. Cooked meals that are chilled, refrigerated, or frozen are subject to VAT at the zero rate. In addition to cold bread, cold bagels, baguettes, paninis, and wraps are also acceptable cold sandwich options.
The second reduced rate of VAT applies to cold food that is included in the purchase of hot food (for example, coleslaw with hot chicken).
VAT is charged at the regular rate on all supplies of alcohol, bottled water, soft drinks, sports drinks, vegetable juices, and fruit juices.

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7.1.1. Combination meal deals

Meal and drink offered together for one price, usually at a discount, that have various VAT rates, such as hot food at the second reduced rate and a soft drink at the regular rate. These goods are typically sold together for a single price. Depending on the proper VAT rates, a discount like this should be divided up across the various components of the meal. Revenue’s instructions on mixed deliveries of goods and services can be found here.

8. Summary Table

Table 8: Types of Food and Drink Takeaway for retail or wholesale
Juices and smoothies made from fruits and vegetables are also available. As Is As Is As Is As I
Bread, butter, sugar, etc (off the shelf produce) Aside from chocolate-dipped biscuits, there are no cakes or biscuits at all. It has been reduced
Crisps, Ice cream, and Biscuits with Chocolate Coating Standard Standard
A cup of coffee or a cup of tea (both hot and cold) (non-drinkable form) N/A Coffee, Tea (Hot) and Confectionery N/A
All-Day Breakfast All-Day Breakfast All-Day Breakfast All-Day Breakfast All-Day Breakfast
The second and reduced version of this article.
Second Cold Sandwich, Reduced and Reduced Zero The Zero Hot Sandwich Second Edition Fish and Chips with a Second Cutback (Frozen or uncooked) Fast Food Fast Food Fast Food Fast Food Fast Food Fast Food Fast Food Fast Food Fast Food Fast Food Fast Food Fast Food Fast Food
Second Reduced and Standard Fruit Juices Second Reduced and Standard As Is As Is As Is As I
Take-away Reductions in both Hot and Take-Away Food Nourishment (Cold) Vinegar with a pH of 0 It’s all or nothing.