Value-Added Tax – Supplements to Food – Whey Based Products

The purpose of this eBrief, which should be read in conjunction with eBrief 70/11, is to confirm the rate of VAT applicable to the supply of whey based sports nutrition products and whey based body building products.

The final paragraph of eBrief 70/11 states that substances marketed specifically to improve sporting or physical performance, such as ergogenic aids, do not benefit from the Zero rate, even if labelled and marketed as food supplements. Following the issue of that eBrief, a question was raised relating to an open appeal case concerning the VAT rate applicable to certain products, which included some whey based sports nutrition products and whey based body building products.

This eBrief confirms that there are no appeal cases currently in litigation in relation to these products. The settled appeal case confirmed Revenue's position that the supply of whey based sports nutrition and body building products, including beverages, concentrates, crystals, essences, extracts, powders or other products for the preparation of beverages, does not come within the scope of column 2(c) or (d) of Part E of Table 1 to Schedule II of the Value-Added Tax Consolidation Act 2010 and, therefore, does not qualify for the application of the Zero rate of VAT.

Accordingly, the correct rate of VAT applicable to the supply of whey based sports nutrition products and whey based body building products is the standard rate, currently 23%.

Revenue has formally advised the manufacturers of such products of the position and understands that they are applying the correct VAT rate to such products. Wholesalers, distributors and retailers of such products must ensure that they also apply the correct VAT rate.