Pulsin' Ltd v Revenue & Customs (VAT - ZERO-RATING : Food, etc) [2018] UKFTT 775 (TC) (28 December 2018)

Pulsin' Ltd v Revenue & Customs (VAT - ZERO-RATING : Food, etc) [2018] UKFTT 775 (TC) (28 December 2018)

The Products possess sufficient characteristics of cakes, including ingredients, manufacturing process, appearance, taste, texture, and consumer perception, to be classified as cakes for VAT purposes and are therefore zero-rated.

Citation
[2018] UKFTT 775
Parties
Appellant: Pulsin’ Ltd; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
28 December 2018
Procedural Posture
VAT Classification Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal allowed
Legal Topics
VAT Zero Rating, Food Classification, Confectionery Vs Cake, Fiscal Neutrality

Case Brief

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Parties

Pulsin’ Ltd

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Classification Appeal / First Tier Tribunal (tax Chamber) Decision

  1. 1 Whether Pulsin’ Raw Choc Brownies are cakes for VAT purposes and thus zero-rated, or confectionery and thus standard-rated
  2. 2 Whether the principle of fiscal neutrality requires zero-rating

Ratio Decidendi

The Products possess sufficient characteristics of cakes, including ingredients, manufacturing process, appearance, taste, texture, and consumer perception, to be classified as cakes for VAT purposes and are therefore zero-rated.

Court Disposition

Appeal allowed

Orders

  • The Products are classified as cakes and eligible to be zero-rated for VAT purposes.
  • Claims to overpaid VAT are repayable, subject to verification of quantum.