Accounting for VAT on Christmas Hampers

VAT Question

My client is a food retailer and is putting together ‘Christmas boxes’ that include items which, when sold separately, would be standard-rated or zero-rated. “These ‘Christmas boxes’ are to be sold at a single price. How do I account for VAT on these sales?”

VAT Answer

In order to establish what VAT is payable on these sales you will need to analysis the cost of the goods included in the boxes to establish the cost price ratio of standard-rated items included in the boxes. That ratio should then be applied to the sales price to provide you with the value on which VAT is due.

For example, the total cost price of items included in the boxes is £50 and the total value of standard-rated items included is £20. In this case 40% of the cost price relates to standard rated items and therefore 40% of the sale is treated as standard-rate.

Related VAT Questions

Partial Exemption – Incidental Supplies

Is interest received ignored for partial exemption?

View Answer

Separating a Business?

My client provides both commercial and residential cleaning services through his VAT-registered limited company but is looking to sell the commercial cleaning side, and it will be much easier to de

View Answer

Reverse Charge on Services Bought From an Overseas Supplier

My UK VAT-registered client has bought IT services from a Dutch supplier. The supplier has charged VAT at 21%. Can my client claim back the VAT they have been charged?

View Answer

Liability of Building Works for Mixed Use Property

My VAT-registered client has purchased a property consisting of a single shop on the ground floor and 2 residential flats on the first floor. The client is to renovate and refurbish the comm

View Answer

LLPs and the Private Tuition Exemption

My client is a partnership of a number of individuals providing swimming lessons to children. Currently their tuition is exempt from VAT, but as the business has become more successful, their liabi

View Answer

VAT Recovery on Residential Refurbishment

A common question asked is whether VAT incurred on the costs of renovating/refurbishing a residential property – whether for sale or leasing out – is recoverable.

View Answer

Real people, real results

Vantage Fee Protect provide market leading Tax Fee Protection
Insurance schemes through accountants.

Truly professional staff, especially the account manager who handled my account. Thoroughly recommended.
Craig Hanlon, Beancounter Accountancy Services
Vantage have been the first choice for fee protection for our practice for many years. They offer peace of mind, expert advice and their service is second to none.
Nikola Greening, Chepstow Accounting
I would like to compliment Yasine on his great service and professionalism in handling my company's needs and dealing with all queries surrounding the mailing. Also responding very quickly to emails.
Dave Howe, BAS Bristol
I have used Vantage for over 10 years and never contemplated moving to another provider which I think says it all. Very friendly/competitive in pricing and professional.
Ronald Brotherton, Brothertons Accountants Limited
Always top service and on-hand to deal with any queries. Definitely recommended!
David Wall, A J Bennewith & Co
Having switched to VTFP, we were immediately really impressed with the advice line service, the advisors are brilliant, no waiting times, you nearly always get an advisor on the first time of calling.
Diana Miller, Robinson Miller
We’ve been using your VAT and Tax specialists lately – they’re a godsend – really knowledgeable, straight talking, patient and professional We’re so happy with Vantage.
Debby Wetton, Sealy Shaw
I have had a pleasant experience dealing with you during the renewal process and have found you very helpful.
Amy Smith, RRL LLP
The Team at Vantage are always a delight and made the switch seamless, we have got so much more out of our Fee Protection scheme since switching to Vantage.
Francesca Tricarico, Future Cloud Accounting
The service has been seamless from start to finish – with clear communication, efficient support, and a real understanding of our needs.
Haroon Sarwar, HMS Accountancy
We use Vantage for our tax fee protection policy which is good value. The tax and VAT helplines are really helpful, manned by real people who answer the calls in good time.
Jennie Gillam, Red Fish Accountancy Ltd

Don’t be shy,
get in touch

Vantage Fee Protect provide market leading Tax Fee Protection
Insurance schemes through accountants.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
Privacy Policy Consent*