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Hello, A client needs clarification on VAT to be applied to rice cakes in a number of cases, 1. Standard plain rice cake, 2. Salt & Vinegar rice cake, 3. Suger-coated rice cake, 4. Chocolate covered rice cake. Thanks.

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Posted by (Questions: 24, Answers: 3)
Asked on 14 October 2019 12:38 pm
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The reduced rate applies to flour or egg based bakery products, including:

Cakes.

Apple tarts.

Baked alaska.

Banoffee dessert.

Cake batter.

Cheesecake.

Cheesecake mix with a biscuit base.

Chocolate mini rolls.

Christmas pudding.

Doughnuts (donuts).

Frozen pastry.

Gingerbread.

Lemon mascarpone dessert.

Meringues.

Pancakes (but the zero rate applies to pastries filled with meat, cheese or vegetables).

Pastries (but the zero rate applies to pastries filled with meat, cheese or vegetables).

Pastry tarts (e.g., filled with custard, apple, rhubarb).

Pavlova desserts.

Pop tarts.

Scones.

Sponge-based trifle desert.

Sponge slices.

Tiramisu.

Trifle with a sponge base. The zero rate applies to jelly trifle.

Waffles. [1]

According to the State Chemist, moisture content over 12% is associated with cakes (as opposed to biscuits). Jaffa cakes are regarded as cake because moisture content is greater than 12%.

The standard rate applies to:

Cakes that are not flour or egg-based, e.g., rice cakes.

Cake decorations (non-edible figurines).

Chocolate mallow “tea cakes” (chocolate biscuits).

Hundred and thousands.

Marshmallows. [2]

1 VATCA 2010 Sch 3 para 3(5)

2 VATCA 2010 s 46(1)(a)

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Posted by (Questions: 5, Answers: 5012)
Answered on 16 October 2019 12:06 pm