Chapter 4 - Schedule 8 VATA 1994 - Zero Rating

Question 1

Schedule 8 VATA 1994

Answer 1

18 groups contained in Schedule 8 that are zero rated

Question 2

Groups 1-9

Answer 2

1 - Food
2 - Sewerage and water
3 - Books
4 - Talking books for blind and handicapped, wireless sets for blind
5 - Construction of buildings
6 - Protected buildings
7 - International services
8 - Transport
9 - Caravans and houseboats

Question 3

Groups 10-18

Answer 3

10 - Gold
11 - Bank notes
12 - Drugs, medicines and aid for the disabled
13 - Imports and exports
14 - Tax free shops (withdrawn 1/7/1999)
15 - Charities
16 - Clothing and footwear
17 - Emissions allowances (withdrawn 1/11/2010)
18 - European Research Infrastructure Consortia

Question 4

Group 1 - Food

Answer 4

Not a blanket term. Exceptions (and standard rate):

Foodstuffs:

• ice cream
• sweets and choc biscuits (NOT CAKE OR NON CHOC BISCUITS)
• beverages that aren’t milk, tea, cocoa, coffee or meat extracts (Bovril)
• snacks made from potato, swelled cereals and nuts other than nuts in shells

Catering:

• food with service (wedding caterers etc)
• any supply of food for consumption on the premises of which it’s supplied (seating areas)
• any supply of hot food consumption off the premises (Greggs)

Question 5

Group 3 - Books

Answer 5

Covered are: books, brochures, pamphlets, leaflets, newspapers, journals and periodicals, picture books, painting books, any printed must matter, and maps
Electronic books are not covered and are standard rate

Question 6

Group 5 - Construction of Buildings

Answer 6

Need the right type of supply and right type of building.
Right type of supply must be of major interest to the building - freehold or lease exceeding 21 years.
Right type of building would be a dwelling, relevant residential building and relevant charitable building

Question 7

Group 16 - Clothing and Footwear

Answer 7

Kids clothes and shoes are zero rated. As are hats and other forms of headgear.
Protective boots and helmets are zero rated
Bike helmets for motorbikes and cycles are too

Question 8

Note

Answer 8

ALWAYS FULLY READ THE NOTES ATTACHED TO THE GROUPS IN THE LEG