We are setting a business selling loose tea which I believe should be VAT exempt, anyone can confirm this? And if we want to sell a set that includes the tea and other other accessories such as cups, tea pot, spoons in a box, how should we calculate the VAT we have to charge on the final product? Thanks
Thank you for your reply. In our case the customer expects to receive both items so it falls on no.2 This means we charge for VAT on the total price of the set including tea or only on what would be 20% rate if purchased separately?