Quote:
Originally Posted by GeoffC
The 'usuals' cigarettes, alcohol & fuel have not gone up (this time round). There remains a 0% or 5% VAT on life's necessities - general food, domestic heating etc ....
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There was an interesting item on this morning's BBC Breakfast about what attracts VAT and what doesn't. It's not as simple as one might think. Eg, plain digestive biscuits are exempt from VAT as food, but chocolate digestives are not, because putting the chocolate on "adds value", and hence makes them liable for VAT. Similarly oranges are exempt, but squashing the oranges to extract the juice again adds value, so orange juice is subject to VAT.