People and Business: Wriggling out
Wednesday 20 January 1999
Deborah Sharp, a VAT specialist at PWC, says it is a serious issue: "It is well known that food for humans is mostly zero-rated. It is perhaps less well known that certain animal feeding stuffs also benefit from this relief from VAT."
In the event a recent VAT tribunal concluded that the purpose of the maggots was not to feed the fish, but rather to lure them to the fisherman, says Ms Sharp. "As a result of the ruling, sales of all such maggots will be subject to VAT at 17.5 per cent."
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