Tell us how much VAT there is on the following goods and services.

This year’s budget finally saw the end of the 5% tax on tampons and other sanitary products. A victory for common sense. Hooray! But there are still loads of odd VAT rules and exceptions. 
So while we’re all stuck inside, take our exciting (yes, it is) VAT quiz and test your tax knowledge. 

What's the VAT rate on these 10 things? Take our quiz.

You’ll notice this one has chocolate buttons and a bow tie – that means he qualifies as confectionery and has VAT at 20%. If he had no chocolate, or just itty-bitty chocolate eyes, the tax man would count it as a biscuit and it’d be VAT-free.

You’ll notice this one has chocolate buttons and a bow tie – that means he qualifies as confectionary and has VAT at 20%. If he had no chocolate, or just itty-bitty chocolate eyes, the tax man would count it as a biscuit and it’d be VAT-free.

Gingerbread man (a very smart one)

Paper doesn’t include VAT. That includes stationery and printed materials too, so your WE WILL CLEAR THOSE TOADS FROM YOUR LOFT EXTENSION leaflet won’t have VAT on it.

Leaflets and Fanzines

“If it’s steaming and hot, VAT it has got. If it’s nice and cold, no VAT when it’s sold”. That’s what our VAT teacher used to say at VAT school, anyway. It’s strange but true: if takeaway food is meant to be hot when served (a roast chicken with chips) it’s got VAT on it, if it’s meant to be cold (a pork pie) there’s no VAT on it.

“If it’s steaming and hot, VAT it has got. If it’s nice and cold, no VAT when it’s sold”. That’s what our VAT teacher used to say at VAT school, anyway. It’s strange but true: if takeaway food is meant to be hot when served (a bowl full of noodles) it’s got VAT on it, if it’s meant to be cold (a pork pie) there’s no VAT on it.

Takeaway food (now known as “food” while all the restaurants and cafes are closed)

Until the 2020 Budget, paper books had zero VAT but e-books were charged at 20% VAT. Thankfully, this is changing and soon you’ll pay no VAT on any book, whether it’s made of paper or pixels.

e-Books (for business)

Travel. It broadens the mind and brings us all closer together – which is why most train companies are running a reduced service. More importantly, it doesn’t have VAT on it. That goes for things like taxis and other short journeys too. In certain circumstances, you can claim back 20% VAT when you buy a car (if it’s solely for business use with no personal use at all).

Train tickets

There’s 20% VAT on your laptop, which VAT registered companies can claim back. But remember – if you’re on the flat rate scheme, you can’t claim back VAT on any capital purchases under £2,000.

A new work laptop

Energy has full rate VAT on it for businesses. So your coffee shop, yoga studio or warehouse office space will have VAT charged on top. At least you save money at home – residential VAT on energy is only 5%.

Gas & Electric costs (for businesses)

It’s all about the potato ratio. Doritos are zero VAT rated, because they’re primarily corn-based. Pringles are VAT-able: HMRC and Proctor & Gamble went to court over this VAT dispute back in 2008. The court of appeal ruled in favour of HMRC, and confirmed that Pringles were in fact a potato snack – even though they contain less than 50% potato. Other well-known VAT exempt snacks include Skips, Twiglets and Bugles, because they’re all maize- and corn-based rather than made from the humble potato.

A packet of Doritos

Cycle and Motorbike helmets are zero VAT rated, as long as they are CE marked and conform to safety standards. In fact, the vast majority of safety equipment is zero-rated including child safety seats; builder’s helmets and work boots. On yer bike.

Bike and motorcycle helmets

Whether you insure your property, your cat, or your own professional services, all insurance products are exempt from VAT (rather than technically zero rated). A different tax is payable for insurances known as IPT or Insurance Premium Tax.

Whether you insure your property, your cat, or your own professional services, all insurance products are exempt from VAT. However a different tax is payable for insurances known as IPT or Insurance Premium Tax.

Business Insurance

Not great. We won’t be inviting you to our infamous dress-as-your-favourite-VAT-rate parties (you’d probably turn up dressed as a corn-based snack). Leave VAT to the experts, like our ANNA tax service.

Not a perfect score but not too shabby at all. It’s almost like you guessed most of them and luck was on your side. If you have to deal with VAT but would rather someone else did it for you, check out our ANNA tax service.

Oooh, you’re a veritable VAT professor. Well done, you. You could probably give our ANNA tax service a run for its money. But who wants to do their own taxes? No-one.

What's the VAT rate on these 10 things? Take our quiz.

Tell us how much VAT there is on the following goods and services.

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