Chapter 16 - Zero Rating Flashcards Preview

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Flashcards in Chapter 16 - Zero Rating Deck (10)
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1

Schedule 8 VATA 1994

18 groups contained in Schedule 8 that are zero rated

2

Groups 1-9

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

3

Groups 10-18

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14 - Tax free shops (withdrawn 1/7/1999)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17 - Emissions allowances (withdrawn 1/11/2010)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

4

Group 1 - Food

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)

5

Group 3 - Books

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

6

Group 5 - Construction of Buildings

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

7

Group 12 - Drugs, Medicine, Aids for Disabled etc

Includes supply of qualifying:
- goods that are dispensed by a pharmacist on prescription
- goods to a disabled person for their domestic or personal use or to a charity for qualifying purpose
- vehicle to a disabled wheelchair user

8

Group 15 - Charities

All covered:
- sale of goods donated
- any advertising supplied to a charity
- repair and maintenance of relevant goods owned

9

Group 16 - Clothing and Footwear

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

10

Note

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