If you wish to avail of an employment contract please click on the following links and print off.
The contract is in two parts as it is quite large.
The VAT guidelines below for bakery product.
Revenue Operational Manual 03-25
[Part 03-25] VAT Treatment on Supplies of Bread
Section 94 of the Finance Act 2012, which was signed into law by the President on 31
March 2012, amended the definition of bread in Schedule 2 of the Value-Added Tax
Consolidation Act 2010. The amended legislation is reproduced below.
A supply of goods being food and drink for human consumption may be liable to
VAT at one of three rates – zero, reduced (currently 13.5%) or standard (currently
23%), depending on the product and the circumstances in which it is supplied. The
supply of a bread product may be liable to VAT at the zero rate or the reduced rate
depending on whether the product conforms to the amended definition reproduced
Bread products (including sliced pans, batch bread, bread rolls, vienna rolls,
wholemeal bread, wholegrain bread, multigrain bread, baps, blaas, bagels, naan bread
and pita bread) are liable to VAT at the zero rate, provided they conform to the
Bread products that do not conform to the definition are liable to VAT at the reduced
rate. Such bread products may have sugar and fat levels that exceed the ingredients
and weight limits specified in the definition or may contain other ingredients, such as
eggs, that are not listed in the definition. Examples of some of the bread products
liable at the reduced rate include croissants, cheese-flavoured breads, cheese bagels
and “brioche”. Crispbreads are also liable to VAT at the reduced rate.
A strict application of the previous definition would have meant that some bread
products that had been assumed to qualify for the zero rate did not, in fact, comply
with the legislation in place. Some of those products may also fail to comply with the
amended definition. Suppliers of bread products should ensure, therefore, that the
correct rate of VAT is applied to all bread products in accordance with their
ingredients and weight limits from no later than 1 May 2012.
1 Section 25(2) Value-Added Tax Consolidation Act 2010 provides that certain supplies of food, such
as in a catering or restaurant service, are deemed to be supplies of services rather than supplies of
goods. Such supplies are generally liable at the second reduced rate (currently 9%).
Revenue Operational Manual 03-25
Definition of Bread for VAT Purposes
Extract Reproduced From
Value-Added Tax Consolidation Act 2010
Schedule 2, Paragraph 8(1)
Table 1 - Part F (Column 2)
“For the purposes of this Part “bread” means food for human consumption
manufactured by baking dough composed exclusively of a mixture of cereal or other
flour and any one or more of the ingredients included in column (1) of Table 2 to this
paragraph that do not exceed the quantities (if any) set out for each ingredient in
column (2) of that table, but does not include food packaged for sale as a unit (not
being a unit designated as containing only food specifically for babies) containing 2
or more slices, segments, sections or other similar pieces, having a crust over
substantially the whole of their outside surfaces, being a crust formed in the course of
baking, frying or toasting.”
Ingredients and Weight Limits thereof for Bread as defined in column (2) of Part F of Table 1
Weight limits for the ingredients, as
percentage of weight of flour included in
Fats and sugars (including any fats and
sugars contained in any bread improver)
Not exceeding 12% in aggregate
Dried fruit, vegetables, herbs and spices Not exceeding 10% in aggregate
Yeast or other leavening or aerating
agent, seeds, salt, malt extract, milk,
water, gluten and bread improver
The FCBA were instrumental in lobbying Government from day one on this issue, and worked hard on protecting and ensuring the definition of non vatable products were clear and concise.
We are pleased with the outcome and it finally puts to rest the issue.
Thanks to all our members for your input on this subject. It was through your input and encouragement that we worked hard to help the bakery industry.
Please keep using the forum on the website for discussion as its vital to receive feedback.
To see the document released by the finance dept to us please click on the word document below.