London Daily

Focus on the big picture.

Court Rules: Innovative Bites' Marshmallows Not Subject to VAT as They're Not Sweets

A food company, Innovative Bites Ltd, successfully appealed against a UK tax authority (HMRC) demand for £472,928 in sales tax on their marshmallows, called "Mega Marshmallows." The judges ruled that these marshmallows were not considered confectionery and therefore not subject to VAT (Value Added Tax), as they were sold and purchased specifically for roasting.
HMRC's appeal was rejected.

The text discusses a tax dispute over the Value-Added Tax (VAT) rate for Mega Marshmallows.

HMRC argued that they are subject to the standard 20% VAT rate, as they are "sweetened prepared food which is normally eaten with the fingers." However, the company Innovative Bites, which produces Mega Marshmallows, argued for a lower VAT rate, comparing them to cooking chocolate and tiny marshmallows, which are not taxed because they are considered cooking ingredients.

The judges sided with the lower tribunal's decision, stating that since Mega Marshmallows are not typically roasted before consumption, they will be eaten with the fingers and may be cut up for young children.

Therefore, they fall under the category of "sweetened prepared food which is normally eaten with the fingers" and are subject to the standard 20% VAT rate.

The text discusses a court judgment regarding a roasted food product.

The judges ruled that the method of eating the product, whether it's off the stick or with fingers, is not a significant factor in the product's definition.

Therefore, the focus should be on the product itself rather than how it is consumed.
Newsletter

Related Articles

London Daily
0:00
0:00
Close
Public Uptake of AI Tools Remains Limited
New Tax Rules on Second Homes in the UK to Address Housing Crisis
Can Europe Transition to a War Economy?
France Implements Stricter Airbnb Regulations
Upcoming Pandemic Inevitable, Warns Former UK Chief Scientific Advisor
British Tourists Assaulted by Bouncers in Pattaya, Thailand
Facebook Delays Removal of Fake Account Exploiting TikTok Star
Billionaire Non-Domicile Flees UK Amid Tax Law Changes
Theresa May Admits Mistakes Over Immigration Policies
Nicki Minaj's Manchester Concert Canceled After Amsterdam Arrest
UK Conservative Party Proposes Mandatory National Service at 18
Kate Middleton's Public Absence Throughout 2024
Asylum Seekers Arriving In UK by Sea Exceed 10,000 This Year
UK Criticizes ICJ Order on Israel's Rafah Assault
Ukraine's Fight Against Corruption Gains Ground Amid War
Czech President Petr Pavel Injured in Motorcycle Accident
Record Number of Abortions in England and Wales
Paul McCartney Honours Bruce Springsteen at Ivor Novello Awards
US and UK to Reject ICJ Ruling on Israel's Rafah Offensive
World Court Orders Immediate Halt to Israeli Offensive in Gaza
Understanding FLiRT COVID Variants and Their Impact
Baltic NATO Members to Construct 'Drone Wall'
Global Life Expectancy Dropped By 2 Years Due To COVID-19
Macron Halts New Caledonia Voting Reform After Riots
Rishi Sunak Shelves Rwanda and Smoking Policies Ahead of Election
US Refuses World Court Jurisdiction
China Conducts Surprise Military Drills Around Taiwan
Grim Polls Predict Major Loss for PM Rishi Sunak
Rishi Sunak's Campaign for UK Election: Key Issues Highlighted
German Property Crisis Worsens as Foreign Investment Declines
Princess of Wales's Taskforce Calls for Business Investment in Early Childhood
Campaign Groups Condemn UK Report on Protests
Former Royal Marine Charged with Espionage Found Dead
Australian PM Calls for Julian Assange's Freedom
ICC Seeks Arrest Warrants for Israeli and Hamas Leaders
UK's Infected Blood Scandal: Conclusion Nears After Seven Years
Julian Assange Granted Right to Challenge US Extradition
Congo Army Thwarts Attempted Coup Involving Americans and a British Citizen
Ireland's Homeless Gain Voting Rights
Blinken orders crackdown on Israel-Hamas leaks
Julian Assange Faces US Extradition: Key Facts
Jacob Zuma Takes Campaign to ANC Stronghold Soweto
Attempted Assassination of Slovakia PM Robert Fico: Investigation Ongoing
What Happens If an Iranian President Dies in Office?
Spain Recalls Ambassador After Argentina President's Remarks
Rishi Sunak Faces Cabinet Backlash Over Proposed Changes to Foreign Student Visas
Rwanda Denies Entry to Human Rights Researcher
Iranian President Ebrahim Raisi Reportedly Killed in Helicopter Crash
Blue Origin Resumes Space Tourism with 90-Year-Old Ed Dwight
Rishi Sunak and Wife Akshata Murty Wealthier Than King Charles
×