HMRC argue that ‘tea’ means:

‘ordinary tea that the majority of the population drinks, and substitutes for that tea, e.g. herbal tea …’

and excludes fruit teas and iced tea. Consequently, they argue that these beverages are standard-rated. For further information, see Business Brief 18/1994 (6 October 1994), which is reproduced below.


‘Tea, maté, herbal teas and similar products, and preparations and extracts thereof’ are zero rated. This is under Item no 4 of the Items overriding the Exceptions to Group 1 of Schedule 8 of the VAT Act 1994.

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.