- Walkers’ Sensations Poppadoms ruled to be subject to VAT at the standard rate in recent Tribunal decision
- Food is generally zero rated for VAT, but potato crisps are an exception and subject to 20% VAT
- Walkers argued that their Sensations Poppadoms should be zero rated as they were made from potato granules
- HMRC disputed this claim, stating that the product was made using around 40% potato products
- The result of this case will have significant implications for manufacturers in the snack food industry
- Key takeaways include the importance of product packaging, ingredients, and similarity to potato crisps
- The decision highlights the relevance of fiscal neutrality in VAT treatment for similar products.
Source: mha.co.uk
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.
