For anyone who works in accounting or runs a business, you’ll know that VAT is one of those necessary admin duties to be completed on a regular basis.

VAT, or Value Added Tax to give it the full title, was originally introduced with the aim of being a simple tax on goods and services. Businesses are required to be registered for VAT if they have a turnover of £90,000 a year or more, according to Gov.UK, and keep records of all of the VAT charged accordingly.

But there are some really surprising facts related to where VAT is charged and not charged which will likely come as a surprise to most business owners.

Pet Confusion

Under the VAT rules, ferrets are considered as pets while rabbits are not, creating a difference in the VAT application.

Books or Ebooks

While ebooks are subject to VAT, physical books are exempt. If you’re confused by these strange VAT rules, which is understandable, it may be worth seeking help from Cheltenham business coaching specialists https://www.randall-payne.co.uk/services/business-advisory/business-coaching/cheltenham/ for support.

The Facts Get Stranger

One of the more unusual exemptions from the stringent VAT rules is millionaire’s shortbread – yes, that delicious sweet snack is exempt from VAT, while a similar snack without the VAT would have to pay.

This Is Nuts

Lastly, the case of the shelled nut: nuts in their shells are not subject to VAT, while a tasty bag of shelled nuts ready to eat does attract VAT.