- The UK Court of Appeal ruled that Mega Marshmallows need further review to determine if they are “sweetened prepared food which is normally eaten with the fingers”.
- This classification could result in the marshmallows being subject to standard VAT rates as confectionery.
- The Court of Appeal ruled that the manufacturer failed to prove that the marshmallows aren’t “normally eaten with the fingers”.
- The case returns to the FTT to determine if Mega Marshmallows are normally eaten with the fingers.
- If they are, they will be standard-rated for VAT; if not, they may retain their zero-rated status.
Source: vatcalc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
