VAT on food in Portuguese supermarket is this right?

aah

Supermarket shopping in Portugal - been right royally overcharged - most expensive supermarket ever 3.35 euro for 6 eggs eek. But what's really bothered me is that the VAT is added at point of sale not as the displayed price and that 23% VAT is applied to foodstuffs such as olive spread frozen pizza and ham. A lower rate of VAT has been applied to eggs milk butter and cheeese
I've not come across this before is this right I thought food was VAT exempt

Alter_ego

Different country different laws.

zagfles

It normal to charge VAT on food, most countries do, the UK is unusual in not doing so.

But surprised about VAT not being included in the displayed price, I thought this was illegal in the EU, except for wholesalers who mainly sell to businesses.

It's normal in the US, but VAT is a lot lower.

peachyprice

Yes, it's right, the UK it pretty unique not charging VAT on food considered luxury items and many other things that the majority do.

Portugal
23% Standard All other taxable goods and services.

13% Reduced Some foodstuffs; admission to certain cultural events; restaurant & cafe food; some agricultural supplies; wine; mineral water; diesel for agriculture.

6% Reduced Some foodstuffs; water supplies; certain pharmaceutical products; medical equipment for disabled persons; childrens car seats; domestic passenger transport; restaurant services; some books (excluding e-books); certain newspapers and periodicals; TV licence; social housing; renovation and repair of private dwellings; certain agricultural supplies; hotel accommodation; some social services; some medical and dental care; collection of domestic waste, minor repairs of bicycles; domestic care services; fruit juices; firewood; cut flowers and plants for decorative use and food production.

0% Zero Intra-community and international passenger transport.

http://www.vatlive.com/vat-rates/european-vat-rates/
Makes interesting reading

phatbear

peachyprice wrote: »

Yes, it's right, the UK it pretty unique not charging VAT on food

Well thats not 100% correct things like crisps, nuts, biscuits etc are vatable.

There was a famous case back in the day about jaffa cakes being cakes not biscuits as cake is seen as an essential therefore is not vatable howver biscuits are defined as a luxury and therefore are vatable. If youre interested the legal presidence was set that a cake goes hard as it ages yet a biscuit goes soft, fascinating ehhh?

phatbear

See:

https://www.gov.uk/government/publications/vat-notice-70114-food/vat-notice-70114-food#confectionery

peachyprice

phatbear wrote: »

Well thats not 100% correct things like crisps, nuts, biscuits etc are vatable.

There was a famous case back in the day about jaffa cakes being cakes not biscuits as cake is seen as an essential therefore is not vatable howver biscuits are defined as a luxury and therefore are vatable. If youre interested the legal presidence was set that a cake goes hard as it ages yet a biscuit goes soft, fascinating ehhh?

There, edited for you. I don't believe I actually said ANY food though.

Regardless, we still zero rate a hell of a lot more than any other EU country, including more foods than anywhere else.

phatbear

peachyprice wrote: »

Yes, it's right, the UK it pretty unique not charging VAT on food considered luxury items and many other things that the majority do.

peachyprice wrote: »

There, edited for you. I don't believe I actually said ANY food though.

Regardless, we still zero rate a hell of a lot more than any other EU country, including more foods than anywhere else.

You're still incorrect as the uk DOES charge VAT on items that are considered luxury items however your edited post states the opposite

Murphy_The_Cat

In the UK
small pack of chocolate - vatable
large pack of chocolate - non vatable

Bottled water - vatable

aah

thanks everyone

System

If you look at some supermarkets receipts, they indicate which products have VAT on them.

I know Sainsburys have an asterisk * by them. Morrisons, unsure if they still do this put A and B. I think A non-VAT and B VAT. Then at the bottom, adds up the values of A and B items