Vat

dickieg

can someone tell me when buying food from a wholesallers do you have to pay V.A.T on the final price. As i have just joined a whole sallers and the prices have for example £15 excl of V.A.T. If V.A.T has to be added onto these prices they work out dearer than buying from a shop can someone please explain.

RayWolfe

No VAT on food ................. with exceptions!!!
Orange juice, peanuts, chocolate biscuits are just some of the exceptions.

orangeslimes

as a general rule more healthy food is exempt on VAT but more processed stuff/luxury tends to have VAT (but not always)
you are probably best just asking the wholesaler if what you are buying has VAT - if it does you have to pay

dickieg

Would there be a list anywhere of what is and what is not excl of vat. I have just bought a franchise and would it mean i would have to pay cash for these items, or go through my companies business account

orangeslimes

I just looked it up and the following are exempt
"Food for humans including meat, ready meals and cakes - but not food supplied for catering or hot take-aways, sweets including chocolate and other sweetened food, crisps, nuts and other savoury snacks, ice cream and cones, mineral water and other drinks"
and if you can be bothered reading it:

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_PublicNoticesAndInfoSheets&propertyType=document&columns=1&id=HMCE_CL_000118#P67_4124

How you pay the wholesalers would depends on what they accept probably either cash or payment from your business account would be fine by most businesses.