Understanding VAT on food shopping

Indulgent_Spender

Hello everyone,I'm struggling to understand my latest Waitrose bill, the total amount is £32.69 and on the VAT Summary goes like this:

rate net VAT Gross
0.0% 25.34 0.00 25.34
17.5% 6.26 1.09 7.35
Totals 31.60 1.09 32.69

I've made the calculation on vatcalculator.org and it gives me completely different figures. Me and OH were chatting about how much more expensive our food bill is compared to a year ago and decided to have a look at one of our latest receipts and we both fail to understand it! Can someone please explain to me, PLEASE.

ManAtHome

£25.34 worth was zero rated ('non-luxury' food) and £7.35 was vattable (cleaning products, biccies etc) - does it show a VAT rate at the side of each item, or is it just the totals?

chalkysoil

6.26 x 17.5% = 1.09,
6.26 +1.09 = £7.35 [amount charged to you, if you were a VAT registered business purchasing for work you could claim £1.09 VAT back]

chalkysoil

here's some things they charge VAT on, I made a list to remind me to stock up before the VAT goes up.

fruit juice
nuts
crisps etc
biscuits
chocolate

Laundry detergent
fabric conditioner
Mr Muscle etc
Bleach etc
Washing up liquid
" " " " sponges
Shampoo
Conditioner
hair dye
Soap
Hand wash liquid
deoderant
Contact lens solution
Razors
Toilet Paper
Cosmetics
aerosol room sprays etc
candles
matches

Cat & Dog food
cat litter

Birthday cards

Light bulbs
batteries
deicer
pens
Baby bio
carrier bags

Indulgent_Spender

Thank you for all your replies. :money: It's finally clear!

Vaila

i think it would be agood idea to have it posted on mse all the grocery etc items that were taxable, dont you think ?:)

satan666wayne

Indulgent_Spender wrote: »

my latest Waitrose bill :eek:

That's why your food bill is high.

KimYeovil

Sorry, OP, you are a little unclear - what is it you did not understand? The receipt seems very straightforward and all the numbers add up*. What was the confusion?


(* that is, other than the VAT being rounded down in your favour rather than to the nearest penny.)

MrsBartolozzi

arran_m wrote: »

i think it would be agood idea to have it posted on mse all the grocery etc items that were taxable, dont you think ?:)

It's been discussed before on MSE when the VAT rates went down, then back up, and again more recently after June's announcement:
https://forums.moneysavingexpert.com/discussion/2586633
https://forums.moneysavingexpert.com/discussion/2554789
amongst others..

http://www.guardian.co.uk/uk/2010/jun/22/vat-rise-average-shopping-basket
Gives you a list of which foods are zero rated and which attract VAT.
Oh, and just as an aside: ladies' sanitary products are only subject to the reduced VAT rate (5%) and so are unaffected by the forthcoming increase.

anamenottaken

KimYeovil wrote: »

(* that is, other than the VAT being rounded down in your favour rather than to the nearest penny.)

Technically sellers should always round down (even if the fraction of a penny is 0.9) - because it is wrong to attempt to impose an amount of tax which is not due (0.1p in my example).