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CBD oils and products

Are these VATable when sold via retail

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Afternoon all,

Does anyone have any experience of CBD products and the VAT status? Depending on which report I read, I get from zero rate to standard rated!!

Do we have any experience or views on this please? Or is there a link to some official HMRC status on this? Thank you!

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By Accountant A
30th Oct 2019 16:22

Quote:

Depending on which report I read, I get from zero rate to standard rated!!

Could you post links to the reports that you have read. They sound worth a look.

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By The Dullard
30th Oct 2019 16:38

CBA you say? So do I.

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By paul.benny
30th Oct 2019 16:43

Basic principle of VAT: Everything is standard-rated unless it isn't.

Prescription medicines can be zero-rated (if they meet the conditions set out in VAT701/57). I don't suppose your CBD products are prescription medicines - therefore they're standard-rated.

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Replying to paul.benny:
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By The Dullard
30th Oct 2019 16:46

I think you'll find that one of the requirements is also that the supply is by a registered pharmacist.

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Replying to The Dullard:
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By paul.benny
31st Oct 2019 08:18

True. Given that CBD fails the test of being a prescription medicine, I didn't see any point in copying out any of the other conditions.

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By JordanJamieson
30th Oct 2019 22:19

As a general rule - if you ask anonymously you’re not going to get any constructive answers.

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Replying to JordanJamieson:
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By The Dullard
31st Oct 2019 10:26

I think you mean, "As a general rule - asking stupid questions anonymously is the road to ridicule."

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By [email protected]
01st Nov 2019 11:52

As a result of and a ruling from the EC that we are bound to follow until we Brexit, CBD oil is a food supplement and not a medical problem.

I don't know if HMRC have given a specific ruling on CBD oil but see the following from HMRC current internal manual VFOOD 2060, which appears to have been written before the EC ruling. HMRC need to update their manual.

"Items benefiting from the relief: what is food?: food supplements (dietary supplements): oils
In general, food supplements in the form of oils to be taken by the spoonful or in similar dosages are not considered to be food and are therefore standard-rated. This view is supported by the tribunal results in such a case as Marfleet Refining Co Ltd (V.129) which looked at cod liver oil.

Two later cases both involving the trader Durwin Banks has added depth to the case law in this area. The original Durwin Banks (V.18904) case considered linseed oil and the tribunal decided that it was not food but a food supplement and accordingly should be standard-rated. However, a later appeal by Durwin Banks (V.20695) on an almost identical product was decided differently and was zero-rated as a foodstuff. The main difference was that there was more evidence in the second tribunal concerning the palatability and use of the oil and the increasing retail market for the product in supermarkets. The product had also shifted away from recommending consumption in doses to use as a culinary ingredient."

CBD oils don't need a pharmacist. They can be bought off the shelf at Holland Barrett.

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Replying to [email protected]:
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By The Dullard
01st Nov 2019 15:31

Quote:

As a result of and a ruling from the EC that we are bound to follow until we Brexit, CBD oil is a food supplement and not a medical problem.

Oh, please do point us to the EC "ruling" and what it says.

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By alejandra
08th Nov 2019 14:19

I've just had this discussion with our superintendent pharmacist. The CBD products we are supplying (oil, lip balm and muscle rub) are OTC (over-the-counter) products, therefore VAT is charged at 20%. If they were supplied on prescription or via a PGD (patient group directive) that would be a different matter - so we will need to keep a eye on product creep. Hope that helps.

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By ElizabethLee197
21st Apr 2021 13:58

I have been using these products for a long time, it has only benefited me

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By AlexHoole
24th Nov 2021 02:43

I never worked with CBD products, but this niche was very interesting for me because I ordered CBD oil a few times. So I made a small research about this topic. Cbd products are considered simple dietary supplements, not medicaments. If a product qualifies as a dietary food or health supplement, it's exempt from sales tax regardless of the form in which it's sold (i.e., sold as a solid, liquid, pill, or powder). Carbonated beverages, sports drinks, and energy drinks don't qualify as dietary foods or health supplements.

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By SteveHa
24th Nov 2021 10:28

I read the question, and immediately thought of Bob Dylan.

Well, they'll stone you when you're trying to be so good
They'll stone you just like they said they would
They'll stone you when you're trying to go home
And they'll stone you when you're there all alone
But I would not feel so all alone
Everybody must get stoned

EDIT: I suddenly feel like I'm DJKL

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Replying to SteveHa:
paddle steamer
By DJKL
24th Nov 2021 11:38

I am not that keen on Uncle Bob but my other half really likes him, then again she also likes Leonard Cohen and there is that thing about "being known by the company one keeps" which I suspect may also be applied as "one is known by the music one owns."

However I do like his sentiment, if I was made supreme ruler it would be free drink and drugs to all those over 66, longer term this would likely assist the NHS and Social Care budgets. I might also assist the housing crisis by giving tax reliefs for IHT re commune living, ten retired individuals living together in a big house, growing a lot of their own food, smoking considerable quantities and listening to The Grateful Dead in the evenings.

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Replying to DJKL:
By SteveHa
24th Nov 2021 11:51

My other half refused to speak to me for the best part of a week because I bought a Bob Dylan album myself, rather than telling her where it was so that she could "discover" it herself.

I still have it :)

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Replying to SteveHa:
paddle steamer
By DJKL
24th Nov 2021 12:22

One can get a tad possessive re vinyl, we have been married 31 years and have still not thinned out the doubles (mainly Beatles albums but also some others)

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Replying to DJKL:
By SteveHa
24th Nov 2021 12:26

Beatles - bah - wouldn't buy theirs. I literally just completed my Led Zeppelin studio album collection on vinyl yesterday, though. Still need to complete Iron Maiden, but one of the missing ones is insanely expensive.

And may not even be a good one, but gotta have it. At least, I have tickets to see them live in July 2022.

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Replying to SteveHa:
paddle steamer
By DJKL
24th Nov 2021 12:56

I gave my Led Zep set away a few years ago- but only to my son; 1,2,3,4, H of H, PG, Pres, ITTOD, Coda and SRT . (He even got my Jimmy Page with Sonny Boy Williamson album)

I still have all Pink Floyd, most of Genesis, most of ELP, most of Yes, Rush is a problem as a fair few on cassette and they are starting to fail.

Then again we also have complete UK Beatles albums, near complete McCartney and Lennon solo, lot of George solo (though never got ATMP) lot of Stones, lot of ELO, lot of 10cc, myriad Clapton, lots of Eagles, oodles of Fleetwod Mac, in fact a very broad sweep of music- what I found was that as I came out of my teens I started listening to a far broader range of musical styles , there is even a decent size wodge of classical music, some Scottish folk music and even some Gilbert & Sullivan (none from the one with an O)

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Replying to DJKL:
By SteveHa
24th Nov 2021 13:41

Quote:
oodles of Fleetwod Mac,

It's only in my latter years that I've learned how popular Fleetwood Mac are, across the spectrum of musical taste (In fact, before I even saw your post, I have them playing).

My better half is a huge Stevie Nicks fan. I bought an original (before Nicks/Buckingham) album, which I enjoy. She gave me no grief about that.

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Replying to SteveHa:
paddle steamer
By DJKL
24th Nov 2021 14:29

I actually started with them by buying a secondhand copy of "The Pious Bird of Good Omen" to get the track Albatross. In my early /mid teens I must have read something about vinyl quality comparing singles and albums and started chasing down albums if I wanted particular tracks (Though there was a shop at Haymarket and another near the ABC cinema who would back order singles) More modern Fleetwood Mac appreciation probably started with Rumours, then Tusk then back to the earlier Fleetwood Mac (White) album.

Catch was albums were expensive , as were new singles, but things really started flying when I got past helping bagging potatoes in a local shop and paper rounds and got a proper job at a local hotel washing glasses and doing cellar work, I also spent a summer holiday working for my Dad's firm (mail clerk) so albums started coming in thick and fast, circa £1 each secondhand from Back Beat in Stockbridge and I tended to blow £5 at the end of most week s in the summer of 1976 (Thanks John Bruce, who owned it, for your patience answering all my questions/asking for things to be played( and also later played guitar for local band, Blue N Trouble))

The thing I really like about some of my vinyl is if I purchased reasonably close after release or on occasion new I would have Sounds and NME articles re these albums (I never threw the back papers out back then, they lived as a fire hazard in my bedroom) so some have articles /reviews cut out and still stored in the record sleeves, it is great fun these days listening to say Rossington Collins "Anytime, Anyplace, Anywhere" whilst reading the 1980 articles on its release.

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Replying to DJKL:
By SteveHa
24th Nov 2021 16:10

There is an immense amount of joy in vinyl these days. Last year I picked up an original pressing White Snake album, that included the original merchandise insert. Absolute Classic Rock radio wanted me to send it to them. I sent them pictures :)

They still did a small segment on it

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Replying to SteveHa:
paddle steamer
By DJKL
24th Nov 2021 16:25

It is the little bits that count, who carefully removed "Wish You were Here" from its thin black plastic sleeve? (I did not)

It was one of my quite early albums, the younger of my older sisters gave me it for Christmas though I expect her then boyfriend, Ken chose it. I should have really thanked Ken (long gone, but still remembered as he had an AJS250, long hair and my father thoroughly disapproved of him) because that started my love for Pink Floyd (He also sold me on listening to some Santana and recorded Led Zep 4 onto tape for me (which I still have somewhere)

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