Lack of definition means uncertainty on what constitutes a ‘food supplement’ prevails
Finance Bill 2019
Finance Bill 2019 provides that VAT of 13.5% will apply to the sale of a range of oral food supplements from 1 January 2020. Commenting on this measure, Vincent McCullagh, Indirect Tax, Deloitte commented:
This measure was designed to replace an ageing “concession” that was felt by Revenue and industry to be no longer fit for purpose as advances in food supplement science had resulted in different rates of VAT applying to what many perceived to be similar type products.
The Department of Finance confirmed yesterday that the current zero-rate for certain foods for specific groups (such as infant formula, baby food, diet-related foods) and for fortified foods enriched with vitamins and/or minerals would be maintained. However, the absence of a definition of ‘food supplements’ means the Bill fails to give the legislative certainty that the food supplement industry had hoped for. The fear is that, without a legislative definition, uncertainty will still prevail in the industry. Ultimately, the industry may once again have to turn to the courts as the final arbiter of what constitutes a food supplement.
For Further Information Please Contact
01 498 0300
01 417 2356
At Deloitte, we make an impact that matters for our clients, our people, our profession, and in the wider society by delivering the solutions and insights they need to address their most complex business challenges.
As the largest global professional services and consulting network, with approximately 286,000 professionals in more than 150 countries, we bring world-class capabilities and high-quality services to our clients.
In Ireland, Deloitte has approximately 3,000 people providing audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. Our people have the leadership capabilities, experience and insight to collaborate with clients so they can move forward with confidence.
In this press release references to Deloitte are references to Deloitte Ireland LLP. The information contained in this press release is correct at the time of going to press. Deloitte Ireland LLP is the Ireland affiliate of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”). DTTL and each of its member firms are legally separate and independent entities. DTTL and Deloitte NSE LLP do not provide services to clients. Please see www.deloitte.com/about to learn more about our global network of member firms.