VAT for Food, Drink and Ecommerce Businesses
VAT is where product businesses get caught out most often. Some food is zero rated and some is not, the line between the two is not intuitive, and selling through marketplaces or across borders adds another layer entirely.
We handle registration, returns and the awkward areas properly, so you are not guessing and not overpaying.
What is included
VAT registration, including advice on whether and when you should register
Quarterly or monthly VAT returns, prepared and filed under Making Tax Digital
Advice on the right scheme for you, including the Flat Rate and Cash Accounting schemes where they help
Product liability reviews: working out which of your lines are zero rated, reduced rate or standard rate
Marketplace and platform sales, where the platform may account for VAT rather than you
Imports and exports, including postponed VAT accounting on imports
Support if HMRC raises a query or opens an enquiry
The areas we see go wrong
Food classification. Whether a product is zero rated depends on details that feel arbitrary from the outside. Getting it wrong in either direction is expensive: underpay and you owe HMRC, overpay and you have been quietly damaging your own margin.
Selling through multiple channels. Your own website, a marketplace and a retailer can all have different VAT treatment for the same product.
Importing. Import VAT and duty are handled differently from each other, and only one of them is recoverable.
Registering late. The obligation is based on a rolling twelve month period, not your financial year. It creeps up on growing brands.
Who this is for
Food and drink brands, consumer goods businesses and online sellers, whether you are approaching the registration threshold for the first time or already registered and unsure your returns are right.
Why founders use us for this
We have imported, exported and sold through retailers and online channels in our own business. The VAT questions you are asking are ones we have had to answer for ourselves.
ICAEW regulated and Xero Advisor Certified, so your returns are filed correctly and your records support them.
Common questions
Do I have to register for VAT?
You must register once your taxable turnover passes the threshold in any rolling twelve month period, or if you expect to pass it within the next thirty days. Registering voluntarily below that can also make sense, particularly if your products are zero rated.
My products are zero rated. Is registering worth it?
Often yes. If you charge no VAT on sales but pay it on packaging, ingredients and services, registration can mean regular refunds rather than bills.
Can you review returns already filed?
Yes. If we find errors we will tell you how to correct them and what the exposure looks like.
What happens if I have got it wrong for years?
It is more common than you would think. There is a proper process for correcting it and doing so voluntarily is far better than waiting to be found.
Next step
Book a free 30 minute consultation. Bring your product list and we will tell you where the VAT risk sits.
Related: Bookkeeping and management accounts | Margin, stock and pricing | Year end accounts and
What happens on the call
We take time to understand exactly what you need
We give you a clear overview of how we can help
We answer any urgent questions you have, there and then