Are students exempt from paying VAT on purchases?

There's no such general exemption. However, supplies of certain products which would normally carry VAT are VAT-free when treated as educational supplies, so there are cases when it would be reasonable to assess the educational aspect of the transaction by checking for the student ID of the purchaser. It's a fairly limited scenario, though, and I suspect that the library notice is simply wrong in its general intent. Books have no VAT anyway, so if they are selling books to students then the sign is unnecessary.

Mark

That's discrimination, that is. Why should a bona fide consumer of an educational product be denied a tax perk simply for not being a formally enrolled student?

It's crazy anyway to have one and the same product treated differently for VAT purposes in various circumstances. Is as bad as in the days when there were two rates of VAT (8.5% and 15% IIRC), a "normal" rate and a "luxury" rate. If you bought a bag of nuts and bolts at your local ironmonger's it would attract normal VAT but if at a yacht chandler's it would be at the luxury rate.

"Ronald Raygun" wrote

That's exactly what happens in my line of work :-

If the client is a Life Office, the supply is VAT Exempt. If the client is NOT a life office (eg a Regulatory body, or a non-Life Office private sector company/individual) then the supply is Standard-rated for VAT.

Exactly same supply of services, just a different class of client... Crazy? Perhaps!

To reduce abuse?

A pie (or chicken or croissant) warm because it is cooling down it is Zero Rated. The same pie at the same temperature having been heated up is Standard Rated :)

"Troy Steadman" wrote

How did the first pie get to be "cooling down", if it wasn't the second sort and so hadn't "been heated up" beforehand?

And no - I don't sell pies (or chickens or croissants)!!

Because it was freshly baked (and intended to be sold cold for reheating at home [3]), but hasn't quite cooled down to shelf temperature yet, as opposed to having been baked possibly elsewhere, delivered cold to the store, and re-heated to be served with or without chips or mushy [4] peas.

Absolutely - they're much, much better that way.

"Ronald Raygun" wrote

I think that "baking" involves "being heated up" - doesn't it? :-(

Technically, yes.

An easy mistake to make. Evidently thinking is a high-risk activity.

If the customer can prove that the purchase is for educational reasons, then it is VAT free. Showing student ID is simply one method that is considered sufficient proof. It doesn't mean that other people can't get the reduced price, it simply means that they need to find a different way of showing that the purchase is for educational use.

It's a bit like buying alcohol or other age-restricted goods, or services (such as tickets) that are reduced in price for people with certain benefits - it's up to the customer to prove that they are eligible to purchase (or purchase at the reduced price), not for the vendor to prove that they are not. Having appropriate ID is a simple way of offering such proof, but the absence of it doesn't necessary invalidate the claim; it merely means that the purchaser has to find a different way of satisfying the vendor of their eligibility.

Well, yes, but that's not quite the same thing as discrimination.

Mark

It's not just tax - have a look at some educational software, where you have to register matriculation or course registration details to get the software keys. The price differential puts VAT in the shade

Toom

If you buy a hot roast chicken at a fish and chip shop, it is standard rated but if you buy the same product at the same temperature at Sainsbury's supermarket, there is not VAT.

Sure?

I can understand that if you have a sit-down meal in a chippie restaurant there may be VAT.

Not strictly relevant, but we had fish and chips at Morrisons recently, and the battered fish was delicious!

I know I am.

Are you? Elsewhere you said:

" In a chip shop the chicken is hot and meant to be eaten soon but in the supermarket it is cold and most likely will be eaten later. "

but Alasdair is specifically referring to "the same temperature", i.e. hot.

Most supermarkets sell chilled meats which have been pre-roasted. But many supermarkets *also* sell hot roast chicken which is clearly intended to be eaten hot. Is there really no VAT on the latter? If not, then on what basis is the decision made whether VAT applies?

I'd not read it closely. I was thinking this was the same argument as before.

If the main purpose for heating is so the food can be consumed hot or warm the supply will be standard rated.

Some points to be in mind:

take-aways - standard-rated food packaged to retain heat - standard-rated availability of utensils and sauces - standard-rated certain foods can be eaten cold and would still remain standard-rated if food is allowed to cool naturally between heating and consumption this may indicate zero-rated promotional and advertising material may be indicators

Therefore, usually I would say there is VAT on the hot roast chicken.