- 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.
Source Taxually
