Wm Morrison Supermarkets PLC v Commissioners for His Majesty's Revenue and Customs (VAT - zero rating - whether Nakd and Organix bars are confectionary - meaning of confectionary - multi-factoral test including consideration of healthiness and comparison of ingredients in traditional confectionary) [2024] UKFTT 181 (TC) (04 March 2024)

Wm Morrison Supermarkets PLC v Commissioners for His Majesty's Revenue and Customs (VAT - zero rating - whether Nakd and Organix bars are confectionary - meaning of confectionary - multi-factoral test including consideration of healthiness and comparison of ingredients in traditional confectionary) [2024] UKFTT 181 (TC) (04 March 2024)

The products are confectionery for VAT purposes because they have the appearance, texture, mouthfeel, density, and taste of confectionery, and would be so regarded by the informed ordinary person in the street. The importance of look, feel, and taste outweighs factors such as marketing, healthiness, or absence of traditional ingredients.

Citation
[2024] UKFTT 181
Parties
Appellant: WM Morrison Supermarkets PLC; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
04 March 2024
Procedural Posture
VAT Appeal / First Tier Tribunal, Rehearing After Upper Tribunal Remittal
Outcome
Appeal dismissed
Legal Topics
VAT Classification, Food Products, Confectionery Definition, Zero Rating
Tax Law VAT Classification Food Products Confectionery Definition Zero Rating

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Parties

WM Morrison Supermarkets PLC

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal, Rehearing After Upper Tribunal Remittal

Legal Issues

  1. 1 Are Nakd and Organix bars 'confectionery' for VAT purposes under Schedule 8 VATA 1994?
  2. 2 Should the products be zero-rated or standard-rated for VAT?

Ratio Decidendi

The products are confectionery for VAT purposes because they have the appearance, texture, mouthfeel, density, and taste of confectionery, and would be so regarded by the informed ordinary person in the street. The importance of look, feel, and taste outweighs factors such as marketing, healthiness, or absence of traditional ingredients.

Court Disposition

Appeal dismissed

Orders

  • The products are standard-rated for VAT as confectionery.