Bread and bakery products

What VAT rates apply to bread?

The supply of bread may be liable to Value-Added Tax (VAT) at the zero rate or the reduced rate. The VAT rate depends on the bread product concerned and the circumstance in which it is supplied.

The supply of bread that meets the ingredient definition under VAT legislation, is liable to VAT at the zero rate. Bread products such as, garlic bread, onion bread and fennel bread do not generally conform to the ingredient definition of bread. Therefore, they may be liable to VAT at the reduced rate.

Further guidance contains more detailed information on the VAT treatment of bread.

What VAT rate applies to bakery products?

The supply of bakery products, such as:

  • cakes
  • biscuits
  • bagels
  • croissants,

being flour or egg based bakery products, is liable to VAT at the reduced rate.

The reduced rate may apply if a bread or bakery product is supplied in the course of a meal.

Further guidance contains more detailed information on the VAT treatment of food and drink.