HMRC’s guidance in VAT Notice 714 – Zero rating young children's clothing and footwear explains when supplies of children’s clothing and footwear can be zero-rated.

Supplies of children’s clothing and footwear can usually be zero-rated where all the following conditions are met:

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

Most items of baby wear, such as bonnets, bootees and matinee jackets, can be clearly recognised as clothing, but less obvious items are also considered to be articles of clothing such as baby bibs and shawls.

The notice also confirms that larger size clothes designed for young children must satisfy two conditions in order to be zero-rated. These conditions are that the clothes are designed to fit a body size no larger than what is stated in the guidance and that the clothes are restricted by some other design feature to those under 14 years of age.

Source: New feed