Given that toilet rolls are a necessity in every household and business property, they certainly can’t be classed as a luxury item. But the topic of how toilet paper has VAT applied recently came up in a discussion on the radio, so I thought I’d give you the definitive answer.
There is VAT on toilet rolls as toilet paper is classed as a standard-rated item. This means that loo rolls have the standard VAT rate of 20%.
It is worth noting that essential items such as toothpaste and toilet paper are subject to VAT, but there have been some calls for these items to be exempt from VAT, as they are considered necessary for everyday life. However, as it stands, there is VAT on toilet paper and there’s no indication this will change soon.
However, this isn’t always the case in other countries who have reduced VAT rates for essential items such as toilet rolls. Germany is one example, where the VAT rate for toilet paper is 7%, a significantly lower rate than the UK’s 20% tax.
In the United States, there is no federal VAT system. Instead, sales tax is applied at the state and local level. The rules and regulations surrounding sales tax vary greatly depending on the state. In some states, toilet rolls are subject to sales tax, whilst in other states they are not.
In Canada, toilet rolls are subject to the Goods and Services Tax (GST) at a rate of 5%. However, some provinces also have a Provincial Sales Tax (PST) that is applied on top of the GST. The rules and regulations surrounding GST and PST vary depending on the province.
In Australia, toilet rolls are subject to the Goods and Services Tax (GST) at a rate of 10%. However, some products are exempt from GST, such as basic food items and some medical supplies.
The rules and regulations surrounding VAT on toilet rolls vary greatly depending on the country you are in. Consumers and businesses should be aware of the VAT regulations in their country to ensure that they are complying with the law.
In conclusion, toilet rolls have VAT applied in the UK and are not considered zero-rated or reduced-rated goods, so are subject to the standard rate of 20%.
The only time there could be an exception would be if toilet rolls are sold as part of a charity and fundraising event. In this case, the toilet rolls may be zero-rated for VAT purposes. This applies to toilet rolls that are sold by a charity or on behalf of a charity, and the proceeds are donated to the charity.
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Jon has been in business since 1999, and in that time worked with more than 300 small business clients. As well as being an accountant, he is also an early adopter of tech, and has helped small businesses to leverage the power of their computer systems by creating software to automate and simplify accounting tasks.
