- VAT treatment of coffee varies across different countries and is not always subject to reduced rates or exemptions.
- In Italy, coffee is taxed at the standard rate of 22%, while coffee substitutes are subject to a reduced rate of 10%.
- In Ethiopia, coffee is treated the same as other goods and subject to the standard rate of 15%.
- In Colombia, coffee exports are not subject to VAT, but a 19% VAT rate applies for local sales.
- In the United Kingdom, coffee substitutes are zero-rated, and specific conditions need to be met for coffee to be zero-rated, such as not being supplied in the course of catering.
Source VATit
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