The system of VAT, value-added tax, was created for one purpose. To earn the government money on the buying and selling of services and goods. It was set at a percentage (currently 20%) and conceived as simple to implement. However, over the years, it has descended into a complicated mess. To make sure you stay on the right side of the law, these Bath Accountants https://chippendaleandclark.com/accountant-in-bath/ can help with that. Here are some of its anomalies.
- If something was stolen from a shop, it is not subject to VAT. However, the stolen money is subject. On the topic, knock-off goods and copies are subject, but fake money isn’t (how could it be?)
- Honey is free from VAT, but the Bees that produce it are not (you can buy Bees).
- Gingerbread men can dodge VAT with their appearance. If they have two chocolate drop eyes, they are exempt if they have anything else on, like buttons, they’re subject. Someone actually sat down and decided that.
- Jaffa Cakes are cakes and not biscuits, so they are not subject. The government tried to claim they were, and McVities fought them in Court and won. The evidence? Biscuits go soft after time, Jaffa Cakes, like Cake, goes hard.
- A physical book will not cost you VAT. If you want to buy it via eBook that’s quite a different matter.
And finally, Caviar is not classed as a luxury, but Orange squash is? Which would your kids prefer?