Marshmallow VAT Mania
This caught our eye as the week drew to a close.
We are all familiar with the – “Is a Jaffa cake a cake or a biscuit” case when looking at the VAT treatment of chocolate-covered items of food. This case brings in the issue of large marshmallows sold for “roasting”. Innovative Bites is the name of the company and whilst it’s a First Tier Case – so not a precedent – the decision was that these items could be regarded as “food” as opposed to confectionary and therefore could be zero-rated for VAT purposes.
VAT – who says it’s not an interesting tax! Anyone for a roasted marshmallow? VAT free as well as Fat free it now appears.
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