VAT on biscuitsPublished on
The standard rate applies to biscuits covered or decorated with chocolate, e.g., chocolate mallow “tea cakes”.
The reduced rate applies to biscuits as they are flour or egg based bakery products. This include chocolate chip cookies, cream crackers and wafers.
The reduced rate applies to a biscuit assortment, if the weight of the chocolate biscuits does not exceed 15% of the total weight of the assortment.
According to the State Chemist, moisture content over 12% is associated with cakes (as opposed to biscuits). Jaffa cakes are regarded as cakes because moisture content is greater than 12%.
The standard rate applies to flapjacks such as a peanut and caramel confection and chocolate covered flapjacks. The reduced rate applies to flapjacks that are flour based bakery products.
VATCA 2010 Sch 3 para 3