Share this content
25

Cookie Dough VAT

Are Cookie Dough's standard or zero vat?

Didn't find your answer?

I have a client who sells chocolate chip cookie dough's in a dessert parlour- for accounting purposes should they be treated as zero rated for VAT or standard rated?

Am I right in assuming if they are consumed within the store then they are standard rated but if they are taken out then zero rated VAT.

If the cookie dough was sold with chocolate sauce drizzled on it would that make a difference?

 

Replies (25)

Please login or register to join the discussion.

Psycho
By Wilson Philips
17th Jul 2020 11:27

Why does the VAT status affect the accounting treatment?

In any event, my gut feeling is that they are standard rated in any case (possibly subject to temporary reduced rate).

Thanks (0)
Hallerud at Easter
By DJKL
17th Jul 2020 11:22

If the client is putting it into ice cream then the client ought to be ashamed.

There is only one flavour of ice cream, sayeth the lord ,and vanilla is his name.

Thanks (3)
Replying to DJKL:
avatar
By gillybean04
17th Jul 2020 18:50

DJKL wrote:

If the client is putting it into ice cream then the client ought to be ashamed.

There is only one flavour of ice cream, sayeth the lord ,and vanilla is his name.

Madagascan?

Thanks (0)
avatar
By paul.benny
17th Jul 2020 12:14

Take a look at VAT700/14 and in particular section 3.4. Chocolate chip cookies are zero-rated; adding a coating makes them standard rated. It seems logical that dough would follow the same treatment.

And as you say, if sold for consumption on the premises, standard rate normally applies. They would appear to be eligible for the reduced rate.

Thanks (0)
Replying to paul.benny:
Quack
By Constantly Confused
17th Jul 2020 14:59

paul.benny wrote:

Take a look at VAT700/14 and in particular section 3.4. Chocolate chip cookies are zero-rated; adding a coating makes them standard rated. It seems logical that dough would follow the same treatment.

And as you say, if sold for consumption on the premises, standard rate normally applies. They would appear to be eligible for the reduced rate.

I know you mean 701/14 and I am incredibly disappointed 700/14 (Video cassette films and accounting for VAT) doesn't have a section 3.4 for me to poke fun at you with :)

On a more respectful note, thank you for the cookie update, I would have assumed they fell under 'biscuits wholly or partly covered with chocolate' as my knee jerk reaction, you live and learn!

Thanks (1)
Ivor Windybottom
By Ivor Windybottom
17th Jul 2020 12:20

Have you considered if the "eat in" dough is a supply of catering on the premises?

Look at Notice 701/14 and follow the tortuous path to understand if takeaway food is zero rated or standard rated.

Presumably the dough is cold. Why would someone buy it? Is it for home cooking?

Thanks (0)
Replying to Ivor Windybottom:
Psycho
By Wilson Philips
17th Jul 2020 12:30

Cookie dough is uncooked, but edible.

The question is whether or not it is normally eaten with the fingers (and therefore whether it is considered to be confectionary)

Thanks (0)
avatar
By Paragon155
17th Jul 2020 14:17

The cookie dough in question is a baked cookie dough therefore hot. VAT Notice 700/14 section 3.4 refers to chocolate chip biscuits, which I'm assuming refers to 'cold' biscuits.
I'm leaning towards treating the baked cookie dough as standard rated as per VAT notice 709/1 section 4.

Thanks (0)
Replying to Paragon155:
avatar
By paul.benny
17th Jul 2020 14:41

You didn't mention before that it's hot/just baked. I think you have to look at the precise facts - in particular whether they're advertised as hot and nature of the packaging. The risk here is that they qualify as zero-rated today but the retailer then changes the bags and without realising it, they should be standard-rated.

On balance I think I'd lean towards standard-rating.

Thanks (0)
Replying to Paragon155:
Psycho
By Wilson Philips
17th Jul 2020 15:06

Interesting, because all cookie dough that I've seen is uncooked and served cold.

In my view, baked cookie dough would be - a cookie.

I can see another Jaffa Cake/Snowball debate.

Thanks (0)
Replying to Wilson Philips:
avatar
By Tax Dragon
17th Jul 2020 15:13

All cookies are made by baking cookie dough.
The cookie dough is baked.
Therefore the product is a cookie.

Would you have your hot dough mass with custard or ice-cream? (Vanilla, obvs.)

Thanks (0)
Replying to Tax Dragon:
Psycho
By Wilson Philips
17th Jul 2020 15:20

All cookies are made by baking cookie dough.

Does it necessarily follow that all cookie dough that is baked results in cookies?

(Practically, it probably does - hence my remark above. Logically, I'm not so sure.)

Thanks (0)
Replying to Wilson Philips:
avatar
By Tax Dragon
17th Jul 2020 15:27

The logic is indeed flawed. That was supposed to be obvious from the way I stated it, though actually I have no idea how you were supposed to know that.

I must learn to read things back to myself before I press post.

Thanks (1)
Replying to Wilson Philips:
RLI
By lionofludesch
17th Jul 2020 16:37

Wilson Philips wrote:

All cookies are made by baking cookie dough.

Agree. So it's going to boil down to how it's presented.

Cookie dough for you to take home and bake yourself - zero rated.

Cookie dough deliberately served hot - standard rated.

Cookie dough served hot but that's just because it's fresh out of the oven and hasn't had time to cool - zero rated.

Cookie dough served on the premises, with or without a pot of tea - standard rated. Or maybe reduced rate for the next six months.

Cookie dough that you eat with your fingers as confectionery - anybody's guess. I'd say zero rated because that's not the intention but it depends how it's packaged - like dog food..

Thanks (0)
Replying to lionofludesch:
avatar
By Tax Dragon
17th Jul 2020 17:00

Do I need to translate "dessert parlour" for you northern and western types? It's somewhere you eat (hot) puddings.

Thanks (0)
Replying to Tax Dragon:
RLI
By lionofludesch
17th Jul 2020 17:02

Tax Dragon wrote:

Do I need to translate "dessert parlour" for you northern and western types? It's somewhere you eat (hot) puddings.

Dessert parlour ?

Never heard of them - but they sound a good idea.

Thanks (0)
Replying to Tax Dragon:
RLI
By lionofludesch
17th Jul 2020 17:09

Tax Dragon wrote:

Do I need to translate "dessert parlour" for you northern and western types? It's somewhere you eat (hot) puddings.

A quick tinterweb search suggests that the nearest hot dessert parlour to us is in Didsbury. Not even in the same county. We need our passports to get there.

Thanks (0)
Replying to Tax Dragon:
avatar
By Rgab1947
24th Jul 2020 10:52

Yes!

I thought it was a Dubai parlour.

Thanks (0)
Replying to Tax Dragon:
avatar
By SXGuy
18th Jul 2020 07:32

I'm guessing you've never seen an actual marketed jar of edible cookie dough then? Not made for baking in to cookies, but actually edible dough? Suggest you look it up.

Thanks (0)
Replying to SXGuy:
avatar
By Tax Dragon
18th Jul 2020 08:26

Maybe I misunderstand the OP, as I don't see the relevance of your observation.

Paragon155 wrote:

I have a client who sells chocolate chip cookie dough's in a dessert parlour.

Subsequently confirmed served hot.

Thanks (0)
Replying to Tax Dragon:
avatar
By SXGuy
18th Jul 2020 10:44

It was in response to

Tax Dragon wrote:

All cookies are made by baking cookie dough.
The cookie dough is baked.
Therefore the product is a cookie.

Would you have your hot dough mass with custard or ice-cream? (Vanilla, obvs.)

Not all cooked cookie dough is a cookie.

Thanks (0)
Replying to SXGuy:
Psycho
By Wilson Philips
18th Jul 2020 11:15

My point is that none of the edible cookie dough that I have seen has been cooked at all. I don’t think that serving it hot is enough to say that it has been cooked.

I was simply musing that if you take raw cookie dough and cook it what do you get if not a cookie?

Thanks (0)
Replying to SXGuy:
avatar
By Tax Dragon
18th Jul 2020 11:43

And my point was that, as the statement

SXGuy wrote:

Not all cooked cookie dough is a cookie.

was (or so I thought) so self-evidently true that it would be obvious (or so I thought) that I was (knowingly/deliberately) pointing out the flaw in the logic, by expressing it in that (to me humourous... don't ask, it's just how my brain works) way.

And you can see how I wouldn't know that that was the comment you were replying to. The format of this forum is dreadful (comment self-censored).

Thanks (0)
Replying to Tax Dragon:
Pile of Stones
By Beach Accountancy
24th Jul 2020 14:15

I'm now singing the words (I have a client who sells chocolate chip cookie dough's in a dessert parlour.) to the Human League's "Don't You Want Me" - earworm alert!

Thanks (0)
Replying to Paragon155:
RLI
By lionofludesch
17th Jul 2020 16:31

Paragon155 wrote:

The cookie dough in question is a baked cookie dough therefore hot.

That's a nugget of information you kept quiet.

Thanks (0)
Share this content

Related posts