VAT on Supplements

manhattan

The revenue has confirmed that VAT of 21.5% is to be applied to most supplement products. Anyone heard anything on this?

rubadub

I wonder what would be included. Whey is just another dairy product, dunno the VAT on skim milk powder which is probably the most comparable thing.

It will just push people to buy from the UK more if stuff goes up even more.

eclectichoney

(Dons economist hat) I believe VAT is liable on luxury food products, so I imagine Supplements may come under this bracket?

rubadub

eclectichoney wrote: »

(Dons economist hat) I believe VAT is liable on luxury food products, so I imagine Supplements may come under this bracket?

They have very specific definitions.

e.g.
http://www.revenue.ie/en/tax/vat/rates/faqs.html

What is the rate of VAT on food supplements?
The law [Paragraph (xii) of the 2nd Schedule to the VAT Act 1972 (as amended)] allows a zero per cent rate of VAT for some, but not all, types of food and drink. Certain food supplements are also zero rated for VAT, on the basis that such supplements in themselves constitute food. It should be stressed that there is no reference in VAT law to 'food supplements'.

Successive E.U. Directive and Regulations have categorized as 'food supplements' many substances that do not come within the scope of the zero per cent rate of VAT. However, when determining the rate of VAT applying to any product, reference is made to VAT legislation only.

Food supplements are generally zero-rated for VAT insofar as they are taken to supplement a person's diet for the purposes of sustenance. The following substances are zero-rated, whether they are marketed as food supplements or not:

'Food-grade' chemicals, colourings, flavourings and similar additives which are not in an edible form but whose sole use is verifiably as an ingredient for food, regardless of the rate applying to the eventual food products.
Vitamins and minerals in solid form, such as capsules, tablets, pills or lozenges, intended for oral consumption without further preparation.
Vitamins and minerals in liquid form intended for oral consumption without further preparation, but not including beverages such as high vitamin drinks.
Fish oils for oral consumption.
The following types of substance will not come within the scope of the zero per cent rate, even if labelled and marketed as food supplements:

Beverages of any kind (including water) and concentrates, essences, powders, crystals etc. for the preparation of beverages [unless they come within the scope of Paragraph (xii) (b) (I) to (IV)]
Substances marketed as being specifically for health or medical reasons (in most cases, however, these will be zero rated as medicine for human oral consumption in accordance with Paragraph (xiii) of the Second Schedule).
Substances marketed as being specifically to improve sporting or physical performance
Substances in the form of bars or sweets or any other form similar to confectionery coming within the scope of Paragraph (xii)(d)(I).
Any substance that, although consisting in whole or in part of ingredients regarded as food supplements, is marketed for use other than by being consumed (e.g. ointments, liniments, rubs etc.).
.

Protein listed as zero http://www.revenue.ie/en/tax/vat/rates/decision-detail-01399.html

And whey http://www.revenue.ie/en/tax/vat/rates/decision-detail-02591.html

Degsy

This ****ing pathetic government couldnt wipe its own arse with a stick.
They're going to force irish shops out of business because everybody will buy online.
The LAST thing the government should be doing is charging additional VAT.
Clowns.

Mickk

Manhattan works for Ben Dunne and has been told (partially wrongly) by maximuscle to add vat to the products which used to be non vatable. It comes down to what is in the products whether there are vatable or not. Generally supplements aren't vatable (except for creatine and protein bars). I think maximuscle saw what rubadub quoted on the revenue website and panicked, they have told all their customers to add vat to everything.

The problem is that each country can decide which individual products fall under which vat rate, at the moment some have exemptions for food, childrens colthes and medicine ect. Ireland and the UK don't charge for these but it doesn't mean they can't change the rules for anything. Also it often comes down to one persons interpretation of the rules, fruit juice is one which is charged at 21.5% but alot of cakes or biscuits are 0%?

It does look to me like the revenue are planning to hit supplements, I cant find "Paragraph (xii) (b) (I) to (IV)" (of the second schedule), I have searched the irishstatutebook.ie website a few months ago when that statement appeared on the revenue website but I cant find it anywhere. If anyone can find it it would be interesting to see whats in it...

Pro-Nutrition

manhattan wrote: »

The revenue has confirmed that VAT of 21.5% is to be applied to most supplement products. Anyone heard anything on this?

Hey, just seeing this thread now. Firstly I just want to say to you all that we do not intend to push the VAT back onto you guys, its only fair. We will be doing all that we can to ensure our prices stay as they are.

I have to agree with some of the comments here regarding the goverment, they do not have a clue and (my opinion) the only thing that they have succeeded in doing is creating a new middle class poor.

Anyway this is a fitness forum and all that but I just wanted to comment on this and let people know..