VAT on Sun Cream

A high street retailer has called for a cut in the 20% VAT on its child sun cream. What struck me as a tax barrister was that the government is not totally able to move a particular product around between different VAT rates at will. Instead what can be sold at the 5% reduced rate is set out by European law and the zero-rate cannot be extended. As it happens the same products also have a profit margin up to 40%.

Eamon McNicholas
Tax Barrister, Accountant

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About Eamon McNicholas

Tax Barrister, Accountant www.EamonMcNicholas.com
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