Dáil Éireann debate -
Wednesday, 20 Oct 1999

Vol. 509 No. 5

Written Answers. - VAT On Food.

Enda Kenny

Question:

118 Mr. Kenny asked the Minister for Finance if prepared foods sold in supermarkets and other retail outlets, for example filling stations, are zero rated for VAT purposes; the position regarding VAT and food sales outlets; and if he will make a statement on the matter. [20840/99]

Minister for Finance (Mr. McCreevy): Most cold food sold by retail outlets is liable to VAT at the zero rate. This includes most basic foodstuffs, for example, bread, butter, sugar, meat, vegetables, etc. However, certain items of food are specifically excluded from the zero rate and are liable to VAT at either the 12.5 per cent or 21 per cent rates.

The items liable at the 12.5 per cent rate are flour or egg-based bakery products which include biscuits and wafers, other than chocolate-covered biscuits and wafers, crackers and cakes.

The items liable at the 21 per cent rate include sweets; chocolates; confectionery; crisps; ice-cream; frozen desserts, frozen yoghurts and similar frozen products; savoury snack products made form cereal or grain; fried bread segments; pork scratchings and similar products; popcorn and salted or roasted peanuts.

All supplies of hot food are liable to VAT at the reduced rate of 12.5 per cent. Nevertheless, the supply of freshly baked bread which may have retained some heat after baking qualifies for the zero rate of VAT.