Bizzare VAT Rules from around the World.
29th May 2019: If there’s one thing we all agree on it’s this: VAT is complicated!
What’s the point in arguing about this one? For most companies, it’s a complete burden! The rules and regulations from each country change way too often for any company to keep up with. VAT varies so much between goods and services, and between countries – something that companies with a lot of business travel need to be up-to-date with.
What’s more, there are some countries that have some seriously bizarre VAT rules that at times, make no sense. From VAT on the buried treasure to peanuts!
VAT that will make you go nuts.
If nuts are sold in their shell (e.g. pistachio nuts, monkey nuts, etc) they have 0% VAT. However, nuts sold without their shell – VAT is charged (UK).
You can’t tax me, I’m the Gingerbread man.
Did you know, there is no VAT charged on gingerbread sold if it has two chocolate spots for eyes, but for any chocolate-based addition to this – VAT is charged? (UK & IRE).
Jaffa Cakes – a biscuit or a cake?
An oldie but a goodie – Jaffa Cakes are deemed as a cake rather than a biscuit in the VAT world, so there is no VAT paid in the UK. The Revenue also deemed them as cakes, due to their moisture content being higher than 12%, so they are charged at a reduced rate of 13.5%. (EU)
If you are gifted a sum of money, for whatever reason, then thankfully, you don’t pay tax. However, if you simply “find” the money, or better yet, buried treasure, then you must pay tax on it! (US).
Board games are a luxury.
Chess, Scrabble and Monopoly are seen as “luxury” goods – so, you guessed, VAT is added! (India)
Eat-in or takeaway?
In restaurants – food consumed on the premises or in communal areas designated for customers to use must be charged VAT. However, takeaway foods (including home deliveries) designated as “cold food” does not have VAT charged – but “hot food” does. (UK & IRE)
VAT is complex, we make it simple.
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Is VAT still giving you a headache? Get in touch with our team right now and let us worry about your VAT obligations, so you don’t have to!
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