8 Fun Facts About VAT in Europe

VAT may not be the most exciting topic, but it can be quirky.
VAT rates vary across Europe and items can fall into different VAT brackets unexpectedly.
In the UK, a gingerbread man is VAT free, but if covered in chocolate and icing eyes, it becomes standard-rated.
The infamous ‘Jaffa Cake debate’ questioned whether the popular biscuit-sized cake should be taxed as cakes or biscuits.
Dance studios and classes in some EU countries are subject to different VAT rates depending on whether the dance style is considered artistic or entertainment.
Rabbits are not subject to VAT under UK rules, but hamsters and guinea pigs are taxed at the standard rate.
Italy has an interesting approach to VAT on gelato – if eaten at a table, the standard rate applies, but a reduced rate applies if taken away.