Do I need to charge VAT for protein bars sold in UK?
Hello,
Please help me clarify this. We intend to sell protein bars in UK. I read the info from VAT Notice 701/14 issued by HMRC but I am not very clear if for protein bars applies zero VAT rate or standard rate.
Are protein bars considered as General food or Dietary Supplements. Our products are often used as meal replacements and Amazon Seller Support first told us that they don’t consider it as food supplement and another SS representative said there are food supplements.
I am not sure how to consider it.
If someone sells protein bars or know how these works please advise if selling protein bars in UK applies standard VAT rate or zero VAT rate.
Thank you
Do I need to charge VAT for protein bars sold in UK?
Hello,
Please help me clarify this. We intend to sell protein bars in UK. I read the info from VAT Notice 701/14 issued by HMRC but I am not very clear if for protein bars applies zero VAT rate or standard rate.
Are protein bars considered as General food or Dietary Supplements. Our products are often used as meal replacements and Amazon Seller Support first told us that they don’t consider it as food supplement and another SS representative said there are food supplements.
I am not sure how to consider it.
If someone sells protein bars or know how these works please advise if selling protein bars in UK applies standard VAT rate or zero VAT rate.
Thank you
8 replies
Seller_qZO3ZCjoBXEeL
Amazon cannot and should not give advice about tax and VAT matters. Ignore anything they say.
Ultimately you have to make a judgement and face the decision of HMRC.
Based on 5 minutes reading I am inclined to suspect your goods should have VAT applied, but I’m not and expert. See following link.
https://www.gov.uk/hmrc-internal-manuals/vat-food/vfood2700
The test appears to be is the product exclusively and solely used as a slimming aid/meal replacement. The test in one example was does it taste nice? If not then only determined dieters would eat it, otherwise it is confectionary and standard rated for VAT.
So unless your product tastes awful but helps slimming, I expect it will attract standard VAT. As always seek advice of professionals however.
Seller_lhG3Y690i4Qj9
VAT is charged as they are not food (regardless of if people use them as a meal) - https://www.gov.uk/hmrc-internal-manuals/vat-food/vfood2700
Seller_ixz1lZ3QOcOJa
Did your supplier charge VAT when they sold them to you, if yes, then they are VATable.
If you manufacture them then you really should know or consult a VAT expert.
Seller_xcZNbMTMiDog1
Thank you all for your replies. I appreciate your time and advice
It is very tricky. The bars are designed for professional athletes but regular people also buy them. Their main purpose is to be used as meal replacements. Regarding the taste, people who are used with protein powder’s taste and dryness say there is a nice taste, the others say it’s not. They are definitely not confectionery
They are manufactured in another EU country but they have different VAT categories there so I am not sure if I should consider this
I am not sure if to consider zero rate or standard rate in the final price.
Any more advice, please?
Thank you
Seller_KKcTTZzy6Jd6Q
Well used to sell protein bars.
Our accountant is really good with VAT matters.
I can’t remember the exact method used to identify which ones are have VAT and which ones are zero-rated but it’s mostly down to the specific ingredients (milk powder or cocoa are main ones iirc).
From what i can see on the .gov website, if it is not primarily made of fruit and is not artificially sweetened, then it is zero rated, otherwise it is counted as confectionary. However there seem to be a large number of ongoing disputes/etc. so it’s a very grey area.
