- McVitie’s won a previous case arguing that Jaffa Cakes were cakes, not biscuits, and therefore subject to 0% VAT.
- McVitie’s is now arguing that their new Blissful Biscuits should also be subject to 0% VAT.
- The issue is whether the biscuit is partly or wholly covered in chocolate.
- HMRC argues that the top layer of the biscuit is not the same as the bottom layer and therefore the biscuit is not covered in chocolate.
- The judge ruled that the biscuit is partly covered in chocolate and therefore subject to 20% VAT.
- This case raises questions about the interpretation of VAT legislation and the importance of considering VAT liability questions.
- McVitie’s may still appeal the ruling.
- VAT liability questions are important in various sectors, not just food production.
- If anyone needs help determining the VAT treatment of their supplies, they can contact the specialist VAT team.
Source: centurionvat.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.
