I am in the process of starting a bakery/cafe and have a question about the rate of vat that is to be paid on goods that I sell. From my exploration of revenue.ie I understand that there is a 0% rate for many goods and a 9% rate for others. Cold sandwiches for example seem to fall into the 0% category while hot sandwiches fall into the 9% category.
Would anyone be able to clarify this situation for me or point me in the direction of information that could be helpful.
VAT for bread-type foodstuffs is tricky. A normal bun attracts 0% VAT but a bun with a certain percentage (!!!) of chocolate attracts a different rate. And yes there are rules for particular tyes of cakes. Last week Subway failed to prove that their 'Sub' bread is 'bread' and not 'cake' !
Then you have the rates for cafe and rates for takeout and combined rates if you offer a "meal deal" that includes drinks.
So as above, look for an industry group - possibly restaurants assoc https://www.rai.ie/about-rai/ and they'll have all the information you need and recommendations for specialist accountants