Are nurseries VAT exempt?

Nursery businesses make predominantly VAT-exempt supplies, as the provision of nursery services falls into the exemption for childcare – which means no VAT is charged, nor is it reclaimable, on any expenditure relating to that provision. … Businesses solely supplying exempt services cannot register for VAT.

Do you charge VAT on childcare?

Registered childcare settings are exempt from VAT, which means that they cannot charge it or claim it back on any goods or services that they purchase.

Is gardening VAT exempt?

Most of the time your supplies of garden services will be standard rated for VAT purposes. However, soft landscaping supplies (such as turfing, planting trees, shrubs, grass and so on) made on new housing developments can be zero rated. You can check the position with the VAT Helpline on 0300 200 3700.

Are plants subject to VAT?

The supply of most basic foodstuffs for human or animal consumption is zero-rated. Plants and seeds used for the production of foodstuffs are also zero-rated depending on how they are held out for sale. This notice explains when the following items can be zero-rated: plants.

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What items are exempt from VAT?

Items that are VAT exempt in the UK

  • Some food and drink. Most food and drink for human consumption is VAT exempt, but there are some important exceptions. …
  • Children’s clothes. …
  • Publications. …
  • Some medical supplies and equipment. …
  • Charity shop goods. …
  • Antiques. …
  • Some admission charges. …
  • Gambling.

Are after school clubs VAT exempt?

HMRC Notice 701/2 Welfare, paragraph 2.2. 1 explains that the welfare exemption applies to day care services (such as those provided by a nursery, playgroup or after school club), but activity-based clubs such as dance classes are excluded from exemption.

Can you provide VAT exempt supply under the nursing agencies concession ‘?

Nursing concession: Application of the nursing concession can be applied to exempt from VAT the provision of nursing staff. This is usually applied when supplying staff to non-NHS hosts.

What is the VAT rate 2020?

On 8 July 2020, the government announced that it would introduce a temporary 5% reduced rate of VAT for certain supplies of hospitality, hotel and holiday accommodation and admissions to certain attractions. This cut in the VAT rate from the standard rate of 20% will be effective from 15 July 2020 to 12 January 2021.

What’s the difference between VAT exempt and zero rated?

Zero-rated items are goods on which the Government charge VAT but the rate is currently set to zero. Exempt items are goods on which no VAT is paid or charged, but which still need to be recorded on the VAT Return. …

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What is VAT rate at the moment?

The VAT for all sales of food and drink consumed on the premises is reduced from 20% to 5% until January 12th 2021 – excluding alcoholic drinks which stay at 20% VAT.

Is food VAT exempt?

Most food is VAT-free but you do pay VAT on some food. Some items for human consumption are standard-rated. This includes catering, alcoholic drinks, confectionery, crisps and savoury snacks, hot food, sports drinks, hot takeaways, ice cream, soft drinks and mineral water.

Are plants zero rated?

All crops that are grown to produce food of a kind for human consumption or animal feeding stuffs are zero-rated. The zero rate also applies to seeds, seedlings, crowns, spores, tubers and bulbs of edible vegetables and fruit.

What is the VAT rate on plants?

Currently, plants that aren’t considered food are subject to full VAT at 20%, but a new campaign is trying to change that.

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