Working dog food

As part of my business I sell one brand of dog food. It is classed as working dog food so it is zero rated. I buy it without VAT and the company tells me i should sell it without VAT but my accountant says i need to sell it with VAT even though no-one else who sells this food, as far as i can see, adds VAT I need to know what is right on this as i'm losing customers for charging more than others who sell it VAT free and the accountants also made me pay VAT out of my own pocket from selling it VAT free. Thanks for any help

https://www.gov.uk/guidance/animals-and-animal-food-notice-70115#sect64 which states :- A product which is claimed as being suitable for all breeds, size and age of dog is standard-rated. If a specially formulated food is held out for sale exclusively for working dogs it will come within the scope of the VAT relief, unless it is biscuit or meal. Therefore dog food is zero rated when sold exclusively and marketed for working sheepdogs of any breed, assistance dogs or dogs trained as gun dogs, racing greyhounds. Only you will know whether the product is exclusively for the use of working dogs but the fact that the wholesalers zero rate their sale to you is a good indicator that the product is exclusively for the use of working dogs. Your Accountant may just be being over cautious as it is not always a black and white answer, but hopefully the above link and the link below will assist in resolving matters. HMRC internal manuals https://www.gov.uk/hmrc-internal-manuals/vat-food/vfood8560 which considers the marketing/held out for sale angle "If packaging is ambiguous or fails to make it clear that the product is specifically for working dogs, then HMRC should challenge the retailer / producer to support their case for claiming that the product is a food for working dogs, and not a pet food."

Thank you and I have read all that before and it fits those criteria for being a WDF. The Accountant's justifications for us having to pay VAT have varied to be honest but the last one included something like we know we're not selling it to 'working dogs' but the simple truth is that we don't pre-qualify who buys it. No-one has to pass a test to buy it and, as I say, you can go into any pet store and find it without VAT so no-one else does. Cautious or not I probably need a definitive answer from HMRC or a new Accountant. We sell one brand. It has a cat version which we buy with VAT included and sell with VAT and there are some specialist options which also incur VAT but the bulk of what we sell is the WDF.

Hi,

You can find guidance here:

Animals and animal food (VAT Notice 701/15)

Thank you.

Hi,

You would not be able to get a definitive answer from HMRC as we will only provide these if the guidance is ambiguous.

In this instance the guidance is clear on the liability of food for working dogs.

A product which is claimed as being suitable for all breeds, size and age of dog is standard-rated.

If a specially formulated food is held out for sale exclusively for working dogs it will come within the scope of the VAT relief, unless it is biscuit or meal.

Thank you.