VAT? It's easy, right?
How do I know what rate of VAT to charge on my goods and services? It’s easy, right?
27 Feb 2026
Food is zero rated, except when it’s a luxury. Oh and cakes – they’re zero rated, even though they are probably a luxury. Mind you, biscuits with icing are okay, but not chocolate covered – they’re standard rated. Oh and chocolate chips are also zero-rated, but not bars of chocolate, obviously.
Healthcare is easy though, it’s exempt from VAT. Unless the primary purpose is not to protect, maintain and restore the health of an individual. Supplies of staff are easier though – these are standard rated. Unless it’s a nurse, then it could be exempt. Or actually a locum doctor, they might be exempt too. Unless it was between NHS trusts in the same divisional registration – then it could be outside the scope of VAT (because it’s very clearly non-business).
Land and property is much simpler to understand. The sale of a building or a piece of land will always be VAT exempt; unless it’s less than 3 years old and commercial property. Or maybe it’s been opted to tax? Then it would be liable to VAT at the standard rate. Or if it’s being sold to someone who has a zero-rating certificate…then it won’t be standard rated.
Perhaps VAT isn’t so easy after-all….
If you’d like to chat about the possible VAT liability of something you’re doing – we’re happy to help.
