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  • is functional drink Vatable?

    I am seeking clarification regarding the VAT status of a unique product, an enzymes drink concentrate made from fermentation of raw fruits and vegetables. Upon extensive review of the HMRC website, I was unable to find a specific VAT category that aligns with the distinct characteristics of this non-alcoholic enzyme drink. Therefore, I am seeking guidance on its VAT status. The drink in question is crafted from raw fruits and vegetables, rather than concentrate juices. The fermentation process used to create this drink gives it its unique enzymatic properties. Given its unconventional production method and composition, I am uncertain whether it falls under the standard VAT regulations for non-alcoholic beverages. From my understanding, some healthy soft drinks such as kombucha and kefir are zero-rated for VAT. I am curious whether the same applies to this non-alcoholic enzymatic drink. Could you kindly provide clarification on whether such non-alcoholic enzymatic drinks are subject to VAT in the UK? Additionally, I would greatly appreciate any guidance on the applicable VAT rate or any exemptions that may apply to this type of product.