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.
The First-tier Tribunal has once again turned its attention to determining the VAT liability of a food product, in this case large marshmallows. Innovative Bites Limited contended that its product, Mega Marshmallows, is intended to be roasted over a campfire or barbeque or used as an ingredient in a s’more, and that it is not usually consumed as a snack without roasting. Innovative Bites therefore disputed HMRC’s contention that Mega Marshmallows are confectionery and standard rated.
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