VAT on our goods
Further to a telephone call with the HMRC on 4th December 2019 at 13.01 we can confirm our deer antler and buffalo horn are zero rated for VAT because they are not packaged, prepared or canned. We have this in writing if any of our customers require it.
Referring to the following VAT notices;
"It is essential to remember that not all pet foods are standard-rated: only those which are canned, packaged or prepared. See VFOOD8580."
"Once you have established that a product is a pet food, is it then necessary to decide whether it is canned, packaged or prepared before it is ruled to be standard-rated.
It will be immediately obvious whether a product is or is not canned. However, you must still have established that the product is pet food before it will be standard-rated.
Our response: We do not can deer antler or buffalo horn.
Packaged means pre-packed for retail sale in any sealed bag, carton or other container of 12.5 kilograms or less.
If you simply put loose produce in a plain paper or polythene bag at the point of sale, it is not packaged. This applies whether the bag is filled after your customer has bought it, or ahead of time in anticipation of sale.
Our response: We do not package our deer antler or buffalo horn. They are held loose until sold where they are sent in bulk cardboard boxes.
Prepared pet food is animal feed which has been specially mixed or processed to tailor it to pet consumption.
Our response: We do not specially mix deer antler or buffalo horn nor is it tailored for pet consumption. Both items can have a variety of uses, for example it is common for deer antler to be turned into knife handles and for buffalo horn to be made into jewellery. In order for the items to be safe for any use they are cut into sizes and sterilised.
Please see confirmation on page 2 of this letter from the HMRC.