March 2019
In general, most food sold by retail shops is subject to VAT at the zero rate, but there are many exceptions specified in the Irish legislation where the standard rate (currently 23%), or reduced rate (currently 13.5%) applies. The Irish Revenue published a Guidance Note on the Irish VAT treatment applicable to food and drink.
The standard rate of VAT applies to food supplements in Ireland because food supplements are not conventional food. However, an Irish Revenue concession allowed the zero rate to be applied to certain types of vitamins, minerals, and fish oils. Starting 1 March 2019 this concession no longer applies.
Human oral medicines that are licensed/authorised by the Health Products Regulatory Association (HPRA) are liable to VAT at the zero rate. These products are listed on the HPRA website and have Product Authorisation (PA) numbers on their label. Therefore, certain folic acid and other vitamin and mineral products for oral human consumption that are licensed/authorised by the HPRA and that have PA numbers on their label are liable to VAT at the zero rate.
The Irish Revenue recently also published a Guidance Note on the Irish VAT treatment applicable to food supplements and certain other substances for human consumption.
Emma Galvin
egalvin@bdo.ie