The taxpayer claimed that Skinade should be zero-rated as food, but HMRC refused, arguing that it should be standard rated. The key ingredients of Skinade are fish collagen protein, organic flaxseed oil, vitamins, and natural grape juice. The Tribunal had to determine if Skinade qualifies as “food of a kind used for human consumption” under VATA. The packaging and wording on the bottles, as well as the product’s use as a food supplement, were considered. HMRC pointed out the product’s awards, stockists, and reviews related to skincare and beauty. The Tribunal reviewed extensive case law to determine if Skinade could be considered “food”.
Source KPMG
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