VAT Zero-Rating for Children’s Clothing

HMRC’s VAT Notice 714 – Zero Rating of Young Children’s Clothing and Footwear, outlines when children’s clothing and footwear can be zero-rated for VAT purposes.

The conditions for zero-rating are as follows:

• The item must be an article of clothing or footwear;
• The item must not be made of fur;
• The item must be specifically designed for young children, and
• The item must be suitable only for young children.

While most baby wear, such as bonnets, bootees, and matinee jackets, are clearly classified as clothing, other items like baby bibs and shawls are also considered articles of clothing.

For larger-sized clothes intended for young children, zero-rating applies if:

• the clothes are designed to fit a body size no larger than specified in the guidance; and
• the clothes have a design feature that restricts their use to children under 14 years of age.

Get in touch with our accounts department if you want to discuss further.