Getting your loved ones flowers is a beautiful way to show your love or celebrate a milestone, but did you know there is VAT on flowers in the UK? This means that a percentage of the money you pay for flowers goes straight to HM Revenue and Customs (HMRC) rather than to the florist.
Understanding VAT can be tricky for retail businesses, and the floral industry is no exception. If you operate as a florist in the UK, learning how HMRC treats your inventory is essential for legal compliance and healthy profit margins.
This blog post explains VAT on flowers, current registration thresholds, and practical pricing strategies.
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Do Flowers Have VAT on Them?
Yes, there is VAT on flowers, and in most cases it is charged at the standard UK VAT rate of 20%. Fresh flowers, bouquets, ornamental plants and floral arrangements are generally standard-rated supplies. This means if you are a VAT-registered business, you must charge 20% VAT on these sales unless a specific exemption or special rule applies.
Most cut flowers, decorative bouquets, and ornamental plants are standard-rated for VAT. However, some plants that are commonly grown for human consumption, such as culinary herb plants and edible fruit plants, may qualify for zero rating under HMRC rules.
Are Flowers VAT Exempt?
No, flowers are not VAT exempt in the UK simply because they are natural products. Unfortunately, unlike many food items, flowers do not qualify for zero-rating. In most situations, if you are a VAT-registered business, you must charge standard VAT on flowers.
Under the HMRC Notice 701/48, VAT treatment of plants depends on the type of plant and its ordinary use, helping businesses determine the correct VAT rate.
Is There VAT on Fresh Flowers and Bouquets?
Yes, there is VAT on fresh flowers and bouquets that applies to a wide range of products, including fresh cut flowers, hand-tied bouquets, floral arrangements, seasonal flower displays, and gift bouquets.
So, whether you purchase flowers for birthdays, Valentine’s Day, or anniversaries, the VAT on flowers and bouquets is generally charged at the standard rate of 20%.
Do All Florists Need to Register for VAT?
In the UK, any business needs to register for VAT if its taxable turnover exceeds £90,000 in any rolling 12-month period. A business must also register for VAT if it expects its taxable turnover to exceed £90,000 in the next 30 days.
So, this means if your business’s taxable turnover is more than £90,000, or expecting to exceed £90,000 in the next 30 days, you need to register for VAT. However, if it is less than the registration threshold, you don’t need to register for VAT.
Keep in mind that you can only charge VAT on flowers when your business is VAT-registered. You must not charge VAT unless you are VAT registered.
The 12-Month Rolling Rule
If a business’s taxable turnover exceeds £90,000 over any rolling 12-month period, it must notify HMRC within 30 days of the end of the month in which it exceeded the threshold. VAT registration will usually take effect from the first day of the second month after the business exceeds the threshold. Once you are VAT-registered, you must charge VAT on flowers.
Voluntary Registration
If your turnover is below £90,000, you can register voluntarily. Now you must be wondering why one should register for VAT voluntarily. Registering voluntarily for VAT may be beneficial because you can claim VAT on eligible business expenses if your business incurs significant VAT on purchases. However, if you have private customers, voluntary registration may not always be the most cost-effective option.
Can You Claim VAT on Flowers for Staff?
You may claim VAT on flowers purchased for staff, but only if they are bought for business purposes, and the normal VAT recovery rules are met.
However, if business gifts to the same recipient exceed £50 excluding VAT in any 12 months, output VAT may become due. Additionally, flowers provided as a qualifying trivial benefit may be exempt from Income Tax and National Insurance, although the VAT treatment should be considered separately.
To qualify, the gift must cost £50 or less (including VAT), not be cash or a cash voucher, and not be provided as a reward for the employee’s work or performance. Whether you can reclaim VAT on flowers depends on whether they qualify as a business expense under HMRC’s VAT rules and why they were purchased.
Do You Pay VAT on Roses?
Yes, you usually pay VAT on roses at the standard rate of 20%. Fresh-cut roses sold by florists, garden centres, supermarkets, and online retailers are considered standard-rated supplies for VAT purposes.
This applies whether you are buying a single rose, a dozen roses, a hand-tied rose bouquet, or roses purchased for special occasions. If a seller is VAT-registered, they will normally include 20% VAT.
Is There VAT on Flowers From Interflora?
Yes, there is VAT on flowers from Interflora, and they are generally subject to the standard rate of VAT (20%). Prices displayed by Interflora for UK consumer purchases generally include VAT where applicable.
If you are purchasing flowers for business purposes and need a VAT invoice, you should request one from Interflora. Whether you can claim VAT depends on whether your business is VAT-registered and whether the purchase qualifies for input VAT recovery under HMRC’s rules.
Is There VAT on Funeral Flowers?
Many people assume that funeral flowers are exempt from VAT, but this is not correct. There is VAT on flowers used for funerals. Funeral flowers such as wreaths, sprays, and floral tributes supplied directly by a florist are generally subject to VAT.
Different VAT rules may apply if flowers are supplied through a funeral director as part of an exempt funeral arranging service. However, flowers supplied directly by a florist are normally subject to the standard rate of VAT, even when intended for funerals.
Is There VAT on Plants and Flower Delivery?
Most decorative houseplants, cut flowers, bouquets, and ornamental plants are standard-rated, so normally 20% VAT applies.
When it comes to delivery charges, it generally follows the VAT treatment of the goods supplied. This means if there is standard-rated VAT on flowers, the associated delivery charge will also be subject to VAT at 20%.
Is there VAT on Artificial Flowers?
Yes, there is standard-rated VAT on artificial flowers. Products such as silk flowers, plastic flowers, decorative arrangements, and artificial bouquets normally attract 20% VAT.
What are VAT Rules for Florists?
If you operate a florist business and are VAT registered, you must follow the following points:
- Charge 20% VAT on taxable flower sales.
- Apply the correct VAT treatment to delivery charges.
- Submit VAT returns to HMRC on time.
- Keep accurate VAT records.
You can avoid penalties and ensure your business remains compliant by getting the VAT on flowers right.
What are the Common Mistakes Businesses Make?
Florist businesses sometimes make errors when applying VAT on different flowers, including:
- Trying to claim VAT that was never charged.
- Assuming flowers are VAT exempt.
- Forgetting to charge VAT on delivery charges.
- Assuming artificial flowers are VAT exempt or zero-rated.
- Keeping incomplete VAT records.
Always review your VAT processes to reduce the risk of mistakes.
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Final Thoughts
Understanding VAT on flowers is vital for florists and businesses that buy or sell floral products. Generally, in the UK, fresh flowers, bouquets, ornamental plants, and delivery charges are subject to the standard 20% VAT rate.
VAT treatment of flowers supplied as part of a funeral director’s overall funeral arrangements may differ in some circumstances, but flowers sold directly by florists are generally standard-rated.
If you are unsure how VAT on bouquets and flowers applies to your business, get professional accounting advice. At MicroEntityAccounts, we offer several accounting services, including preparing accurate VAT Returns and maintaining compliant bookkeeping records while ensuring complete compliance with HMRC.
Disclaimer: All the information provided in this article is general in nature; it does not intend to disregard any professional advice.
