- McVitie’s Blissfuls could be considered biscuits with a chocolate filling
- They are topped with a biscuit lid in the shape of the McVitie’s logo
- Alternatively, they could be biscuits covered with chocolate and partly covered with a biscuit lid
- The difference in VAT is 20%
- Biscuits are not confectionery unless they are wholly or partly covered in chocolate
- The First-tier Tribunal did not agree with United Biscuits’ description of the chocolate in Blissfuls as a “layer” or a “filling”
- The biscuit lid covered most, but not all, of the biscuit
- The remainder of the biscuit could only be seen as chocolate-covered
- Blissfuls were not eligible for zero-rating
- United Biscuits’ appeal was dismissed.
Source: taxscape.deloitte.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
