One supplier of vitamins and food supplements recently sent a letter to pharmacies regarding the VAT rate on vitamins and food supplements, referring to the Revenue Commissioner’s rules on these products.
IPU are reviewing the correct VAT rates at present and will include any updates in the February product file.
The Revenue rules are set out below.
The Zero rate applies to the following substances, whether they are marketed as food supplements or not, provided they are formulated to make good the potential shortfall from the nutrition required for a normal, healthy diet:
- Vitamins and minerals in solid form, such as capsules, tablets, pills or lozenges, intended for oral consumption without further preparation;
- Vitamins and minerals in liquid form intended for oral consumption without further preparation, but not including beverages such as high-vitamin drinks; and
- Fish oils for oral consumption.
The following substances do not benefit from the Zero rate, even if labelled and marketed as food supplements:
- Substances marketed specifically to improve sporting or physical performance, e.g. ergogenic aids;
- Substances marketed specifically for the purpose of bodily sculpture or weight reduction, e.g. slimming aids;
- Substances that, although consisting in whole or in part of ingredients regarded as food supplements, are marketed for use other than for human consumption such as liniments, ointments and rubs;
- Substances in the form of bars or sweets or any other form similar to confectionery coming within the scope of Column 1 of Part F of the Table; and
- Beverages of any kind (including water), concentrates, crystals, essences, extracts, powders or other products for the preparation of beverages, unless they come within the scope of Column 2(c) or (d) of Part E of the Table.
Also included are products that contain vitamins, minerals, food ingredients etc. but whose purpose is other than for sustenance, for example, skin/hair/nail/eye improvement products, detox, antioxidant, immune, digestive, joint support and cholesterol. This list is not exhaustive.
Click here to see the Revenue ruling on vitamins and food supplements. The following two eBriefs apply: eBrief 70/11 and eBrief 45/13.