Walkers Snack Foods vs HMRC: Sensations Poppadoms and the Complexities of VAT

• Walkers Snack Foods Ltd. failed to prove that Sensations Poppadoms were a side dish in a First Tier Tribunal vs HMRC.
• The case highlights the business considerations of price point and profit margins in relation to VAT.
• Previous VAT cases have included debates over whether a Jaffa Cake is a biscuit, the VAT treatment of a Turmeric drink, and the VAT on a gingerbread man with icing.
• Walkers argued that Sensations Poppadoms should be zero-rated for VAT as they are “food of a kind for human consumption” and should not be classified as crisps or savoury snacks.
• HMRC countered that there is an exception for products made from potato or potato flour, which includes Sensations Poppadoms.
• The Tribunal made a lighthearted comment about the names of snack foods not reflecting their actual nature.

Source: xeinadin.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.

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