Innate-Essence Limited v The Commissioners for HMRC

Innate-Essence Limited v The Commissioners for HMRC

The turmeric shots are not beverages within the meaning of Item 4 of the Excepted Items in Group 1, Schedule 8 VATA. They are not characteristically consumed to increase bodily liquid levels, slake thirst, fortify, or give pleasure, but are consumed for their potential long-term health benefits. The shots are not...

Source-derived case information.

Parties
Appellant: Innate-Essence Limited (t/a The Turmeric Co); Respondents: The Commissioners for HM Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Tax Appeal / First Tier Tribunal (tax Chamber) Judgment
Outcome
Appeal allowed
Legal Topics
VAT Classification, Zero Rating of Food, Definition of Beverage Under VAT, Interpretation of Schedule 8 VATA
Tax Law VAT Classification Zero Rating of Food Definition of Beverage Under VAT Interpretation of Schedule 8 VATA

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 11 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Innate-Essence Limited (t/a The Turmeric Co)

Appellant

The Commissioners for HM Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal (tax Chamber) Judgment

Legal Issues

  1. 1 Whether turmeric shots are zero-rated as food or standard-rated as beverages under Group 1 of Schedule 8 VATA

Ratio Decidendi

The turmeric shots are not beverages within the meaning of Item 4 of the Excepted Items in Group 1, Schedule 8 VATA. They are not characteristically consumed to increase bodily liquid levels, slake thirst, fortify, or give pleasure, but are consumed for their potential long-term health benefits. The shots are not marketed or used as beverages, and their strong taste, small volume, and high price further distinguish them from common beverages. Accordingly, they are zero-rated for VAT purposes as food.

Court Disposition

Appeal allowed

Orders

  • The turmeric shots are to be zero-rated for VAT purposes as food and not standard-rated as beverages.