‘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.
‘ICED TEA DRINKS ARE STANDARD RATED
‘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.