Saturday, 12 March 2011

Bizarre VAT rates

Anyone shopping at Lidl might notice weird facts about VAT as they itemise the VAT on the till receipts.
Food is zero rated and has a letter A beside it. Non food and luxury goods are charged at 20%.
So bizarrely, I see Energy Drink Light which is basically a chemical concoction soft drink  (sugar free copy of Red Bull) at 0.29 p, zero rated for VAT but multivitamin juice, which is pure fruit juice with added vitamins and minerals, is rated at 20% VAT and so more expensive, £0.99!

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