Asda Stores Ltd v Revenue & Customs [2009] UKFTT 264 (TC) (16 October 2009)

Asda Stores Ltd v Revenue & Customs [2009] UKFTT 264 (TC) (16 October 2009)

The 'Seed Stacked FlapJack' is not a cake but an item of sweetened prepared food normally eaten with the fingers, and is therefore classified as confectionary and subject to standard-rated VAT. The ordinary person would not regard the product as a cake, and its ingredients, appearance, and marketing do not align with traditional cakes or flapjacks.

Citation
[2009] UKFTT 264 (TC)
Parties
Appellant: Asda Stores Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
16 October 2009
Procedural Posture
VAT Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed
Legal Topics
Value Added Tax, Zero Rating, Confectionary Classification, Food Law, Schedule 8 VAT Act 1994
Tax Law Value Added Tax Zero Rating Confectionary Classification Food Law Schedule 8 VAT Act 1994

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Parties

Asda Stores Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether the 'Seed Stacked FlapJack' is properly categorised as a cake (zero-rated) or as confectionary (standard-rated) for VAT purposes under the VAT Act 1994, Schedule 8, Group 1, item 2.

Ratio Decidendi

The 'Seed Stacked FlapJack' is not a cake but an item of sweetened prepared food normally eaten with the fingers, and is therefore classified as confectionary and subject to standard-rated VAT. The ordinary person would not regard the product as a cake, and its ingredients, appearance, and marketing do not align with traditional cakes or flapjacks.

Court Disposition

Appeal dismissed