HC Deb 27 January 1988 vol 126 cc303-4W
Mr. Michael Shersby

To ask the Chancellor of the Exchequer whether(a) a jaffa cake, (b) a chocolate chip cookie, (c) a cereal bar, (d) a chocolate bar and (e) a chocolate-coated biscuit are subject to value added tax.

Mr. Lilley

The liability to value added tax of confectionery is governed by excepted item No. 2 of group 1 of schedule 5 to the VAT Act 1983. Under this provision chocolate bars and chocolate coated biscuits are liable to VAT at the standard rate. Jaffa cakes and chocolate chip cookies are regarded as zero-rated. The liability of cereal bars, of which there are a wide variety, falls to be determined in individual cases.

Mr. William Powell

To ask the Chancellor of the Exchequer when Her Majesty's Customs and Excise intend to make available the value added tax annual accounting scheme under section 11(1) of the Finance Act 1987.

Mr. Lilley

The scheme will be available from 1 July 1988 and a copy of the proposed draft Value Added Tax (Annual Accounting) Regulations 1988 has been placed in the Library today.