vat rate for a Bakery

The Baker

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Good afternoon,

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.

Thank you
 
Hi Baker

Good luck in your new venture.

Make sure you have an accountant from the start to set you up right.He would know the answer to these questions.

Another good source would be to speak to someone competent in a similar business.

In fact, do both. Speak to someone in a similar business and ask them what their accountant is like.

Brendan
 
There might also be a sub group of the Small Firms Association or an association of coffee shops who might have help and guidance.

Brendan
 
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' !
 
A normal bun attracts 0% VAT but a bun with a certain percentage (!!!) of chocolate attracts a different rate.

Hi Setanta

I don't think that a "bun" is a VAT classification. :) Cakes are vatable but biscuits aren't .

McVities won a case on having Jaffa Cakes classified as biscuits.

But what about chocolate chip cookies and gingerbread men with chocolate eyes?


Brendan
 
Hi Setanta

I don't think that a "bun" is a VAT classification. :) Cakes are vatable but biscuits aren't .

McVities won a case on having Jaffa Cakes classified as biscuits.

But what about chocolate chip cookies and gingerbread men with chocolate eyes?


Brendan
but that was in the UK where most biscuits are 0% and cakes are 20%

Here plain biscuits are 13.5& and chocolate biscuits are 21%, bakery products are generally 13.5%, plain breads 0%

There's no 9% rate

here's the guide
https://www.revenue.ie/en/tax-profe...s-ica-services/Goods/goods-food-and-drink.pdf


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
 
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