Valentines Day VAT Quiz

Once again the Valentine’s Day season is with us and boxes of chocolates, bouquets of flowers and bottles of prosecco/champagne have been flying off the shelves as couples celebrate the most romantic day of the year.

It’s reasonable to assume that the subject of VAT will not be the first or indeed, the last thing to spring to mind where 14th February is concerned!

However, anyone well-versed in the trickier aspects of the rules surrounding VAT, will appreciate that the VAT treatment of some of the most popular Valentine’s Day gifts is very far from being straightforward.

Whether it’s sending a gift to a long-distance lover, or adorning a hand-made cake with yummy decorations, where VAT is concerned, Valentine’s Day can be a tricky problem!

So how does your knowledge stack up? Can you identify which of the romantic items in the list of questions are zero-rated for VAT and which are standard-rated? Take the Valentines Day tax quiz to find out (the answers and their source are at the end of the quiz)

Question 1:

Frugal Frank wants to pay Zero VAT on a Valentine’s gift for his chocoholic girlfriend, so which of these should he buy her?
1. A box of chocolates
2. A chocolate eclair
3. A large pack of kitkats
4. A pack of chocolate-covered shortbread

Question 2:

Betty the Baker is decorating a home-made cake for her boyfriend. Which of these decorations would be zero-rated for VAT?
1. Chocolate sugar strands
2. Giant chocolate buttons
3. Chocolate raisins
4. Chopped-up pieces of Bournville chocolate

Question 3:

Happy Harry wants to buy an alcoholic gift for his wife. Which of these would be zero-rated for VAT?
1. A box of liqueur chocolates
2. A jar of pears preserved in brandy
3. A bottle of champagne
4. A semi-set Prosecco jelly

Question 4:

Fruity Fiona has asked her husband for a cherry tree for Valentine’s Day. Why should he be careful about which variety he chooses?
1. A Japanese cherry tree would be standard-rated for VAT but a British tree would be zero-rated
2. A Bonsai cherry tree would be standard-rated but a flowering cherry tree would be zero-rated
3. A flowering cherry tree would be standard-rated but one grown for its fruit would be zero-rated
4. A Morello cherry tree would be standard-rated but a sweet cherry tree would be zero-rated

Question 5:

Generous Gareth wants to take his wife for a Valentine’s day trip. Under what circumstances would the cost of the coach be zero-rated for VAT?
1. If the coach had fewer than 10 seats
2. A If the coach was hired without a driver
3. If the coach trip was not a sightseeing tour
4. If the coach was horse-drawn

Question 6:

Lonesome Laura is sending her partner a Valentine’s present, as he’s working away. What VAT will she be charged for the delivery?
1. None if he sends the gift through the post office
2. The same rate that applies to the present she’s sending, will apply to its delivery, regardless of how she sends the gift
3. The reduced rate of 5% VAT if through the post office, 20% standard rate if by courier
4. The delivery will be zero-rated if by courier, exempt if through the post office

Question 7:

To create a romantic ambience on Valentine’s Day, Romantic Roger wants to buy candles that are zero-rated for VAT. Which ones should he choose?
1. A Tapered candles
2. Perfumed candles
3. White candles
4. Yellow candles

Finally, my thanks go FreeAgent (the award-winning online accounting software house) and their technical department for inspiration and information that has assisted me greatly in compiling this quiz.

If you would like more detailed information on some aspect of UK Tax, send me an e-mail and I’ll be pleased to advise further.

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