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 healthiness, marketing, or the absence...

Source-derived case information.

Citation
[2024] UKFTT 181 (TC)
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 / Remitted Hearing Before First Tier Tribunal Following Upper Tribunal Decision
Outcome
Appeal dismissed
Legal Topics
VAT Zero Rating, Definition of Confectionery, Food Classification for VAT, Schedule 8 VATA 1994
Tax Law VAT Zero Rating Definition of Confectionery Food Classification for VAT Schedule 8 VATA 1994

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Parties

WM Morrison Supermarkets PLC

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

VAT Appeal / Remitted Hearing Before First Tier Tribunal Following Upper Tribunal Decision

Legal Issues

  1. 1 Whether Nakd and Organix bars are 'confectionery' within item 2 of the excepted items in Group 1 of Schedule 8 to the Value Added Tax Act 1994 and thus subject to standard rate VAT
  2. 2 Whether the products are cakes for VAT purposes

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 healthiness, marketing, or the absence of traditional confectionery ingredients. The products are not cakes.

Court Disposition

Appeal dismissed

Orders

  • The products are standard-rated for VAT as confectionery.
  • Quantum to be addressed if necessary following submissions.