Further Clarification from Revenue on the Types of Bread Subject to Zero Rate of VAT
Revenue have issued eBrief No. 23/12 and an update to their VAT Manual to clarify that bread subject to the zero rate includes sliced pans, bread rolls, batch bread, baps, naan bread and pita bread, provided they comply with the definition of bread. Bread products such as brioche and croissants are liable to VAT at the reduced rate.
Section 94 Finance Act 2012 amended the definition of bread in Paragraph 8 (1) of Schedule 2 to the VAT Consolidation Act 2010 to ensure that certain products that are commonly accepted as bread are not excluded from the application of the zero rate. Revenue's VAT Manual at Part 03–25 http://www.revenue.ie/en/about/foi/s16/value-added-tax/chpt-03/03-25.pdf?download=true has also been updated to reflect the changes introduced in section 94 and sets out full details of the revised treatment of bread products.