‘No figures’ after Vat clampdown

Bodybuilders, bakers and herbal tea enthusiasts have all found themselves hit with Vat as the Revenue Commissioners have clamped down on tax exempt foods since 2011.

Since 2011 the Revenue have issued three “eBriefs,” in which they have outlined that certain products have had their tax status changed from zero for Vat to 23%, including body building and health supplements and certain baked goods, and they are now eyeing up all teas that are not derived from the camelia tea plant.

Despite bringing in a number of new products into the Vat tax net Revenue are unable to say how much they have gained on the back of these products.

“We have no information on which to arrive at the Vat take on any particular product. The bi-monthly Vat returns made by Vat registered traders simply provide details of the total amount of Vat payable or repayable.”

However, tax director with PwC Cork Nicola Quinn said the changes were not being driven by the Revenue trying to wring more money out of consumers. The two main factors are competition and policy measures to try and make the most basic goods more affordable.

The secretary of Flour Confection and Bakers Association, Gerard Cunningham, agreed that the manner in which Revenue have applied the increased tax left healthy baked breads at 0% Vat while cakes that are 25% fat are hit with 23% VAT.a