Connect with us

Hi, what are you looking for?

Business

Victory for Innovative Bites Ltd as Judges Rule Marshmallows Not Subject to VAT

In a flavorful victory, Innovative Bites Ltd, a food company, has emerged triumphant against the UK tax authorities, securing a ruling that exempts its “Mega Marshmallows” from VAT due to their classification as cooking ingredients rather than confectionery.

HM Revenue and Customs (HMRC) had appealed a 2022 decision by the first-tier tribunal (FTT), which had absolved Innovative Bites Ltd from paying a hefty £472,928 in sales tax on its marshmallow products. HMRC contended that the marshmallows should be subject to the standard 20% VAT rate, given their status as “sweetened prepared food which is normally eaten with the fingers.”

However, the upper-tier tribunal rejected HMRC’s arguments, affirming the FTT’s determination that the Mega Marshmallows were predominantly sold and purchased for roasting rather than immediate consumption as confectionery. Despite HMRC’s emphasis on the means of consumption, the judges sided with Innovative Bites, highlighting the marshmallows’ intended use in cooking and their subsequent physical transformation when roasted.

The judges emphasized that roasting the marshmallows led to a distinct change in texture and flavor, distinguishing them from standard confectionery products. They also took into account the seasonal consumption patterns, noting that Mega Marshmallows were more commonly consumed during warmer months, aligning with their intended use for roasting.

This case echoes previous legal disputes over the VAT status of food items, reminiscent of the famous battle over the classification of Jaffa Cakes as biscuits or cakes in the 1990s. Similarly, the recent ruling draws parallels to a case involving Glanbia Milk’s flapjacks, where the tribunal determined their VAT liability based on factors such as consumption habits and product characteristics.

Innovative Bites Ltd’s victory underscores the nuanced nature of VAT classifications in the food industry and sets a precedent for similar cases involving the tax status of culinary products.

Read more:
Victory for Innovative Bites Ltd as Judges Rule Marshmallows Not Subject to VAT

Advertisement

    You May Also Like

    Investing

    RevisingTheBankSecrecyAct_NorbertMichelAndJenniferSchulp_CMFAWP007   The post Revising the Bank Secrecy Act to Protect Privacy and Deter Criminals (CMFA Working Paper No.007) appeared first on Alt-M.

    Investing

    Recently, an investment advisor and Bitcoin proponent tweeted the claim that “[f]or most of human history” the “[s]eparation of money and state was the...

    Business

    Rollee enables worker’s to share their professional data, spread over one or more financial platforms. Ali Hamriti, CEO and Co-Founder of Rollee, is on...

    Business

    The energy crisis means that as the price of wholesale commercial energy hits an unprecedented high, businesses must pay notably more for their energy...

    Disclaimer: successfuldealnow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 successfuldealnow.com | All Rights Reserved