Cutting Down On Paying VAT Could Be Good For Your Health - Think About It

7th May 2025

VAT is charged on a wide range of foods depending on where you buy them. It is possible you could save a lot on your weekly budget by cutting down on the foods or place where you eat them.

With 20% rate on many items you could be saving a lot by changing your buying habits. Since many of the VAT rated foods are also high in calories or full of sugars and fats your health could benefit.

A diet for week every month could transform your savings if you tuck away the money saved.

Here's a breakdown of VAT rates on different food items in the UK:

Zero-rated (0% VAT):
Most basic food items, such as bread, milk, fruit, and vegetables.
Cold takeaway food (unless eaten in a designated seating area).
Tea, coffee, and cocoa (excluding ready-to-drink versions).

Standard-rated (20% VAT):
Hot takeaway food (such as burgers, pizza, and fish & chips).
Confectionery (chocolate bars, sweets, and biscuits—except plain biscuits).
Soft drinks, sports drinks, and mineral water.
Ice cream and similar frozen desserts.
Alcoholic beverages.

Special cases:
Restaurants and cafes must charge VAT on all food consumed on their premises.
Some food items may be taxed differently depending on how they are sold (e.g., a sandwich sold cold is zero-rated, but if heated, it becomes standard-rated).

Snacks
VAT applies to crisps and peanuts sold in shops in the UK, but the rate depends on how they are prepared:

Crisps - Standard-rated at 20% VAT. This includes potato crisps, chiplets, and most similar snack products.

Peanuts - If roasted or salted, they are standard-rated at 20% VAT. However, peanuts sold in their shells or unprocessed are zero-rated (0% VAT).

Other snack items, like tortilla chips and poppadoms, may be zero-rated, while products like Pringles and Monster Munch are standard-rated.

Basic foodstuffs
You can zero rate all supplies of unprocessed foodstuffs such as:
raw meat and fish
vegetables and fruit
cereals, nuts and pulses
culinary herbs

It does not matter whether you supply these unprocessed foodstuffs direct to the public or for use as ingredients in the manufacture of processed foods, provided they're fit for human consumption.

So when shopping think about how VAT much you could save by not buying certain items. Buying less of the snacks etc will save money on VAT but also make improvements to your health. Thinking about VAT might make you put some items back on the shelf and buy VAT free fruit and veggie instead.

VAT regulations are complex but it you need more details then check out
https://www.gov.uk/guidance/food-products-and-vat-notice-70114