- Starting a new business involves a long list of tasks, but once funding is secured and a product is developed and marketed, VAT becomes an important consideration.
- While most food products are zero-rated for VAT, there are exceptions that could lead to incorrect VAT liabilities.
- Registering for VAT can provide benefits, including the ability to reclaim VAT on setup costs and commercial energy consumption.
- Making Tax Digital (MTD) compliant accounting software is recommended, as is careful consideration of VAT rules for e-commerce, exporting, and importing.
- Additionally, businesses should be aware of new border controls for high-risk food being introduced between 2023 and 2025 when sourcing goods or ingredients from the EU.
Source specialityfoodmagazine.com
