The taxpayer argued that Nakd Bars and Organix Bars are not confectionery and should be zero-rated as cakes. The FTT found them to be confectionery and not cakes, but the UT found errors in the analysis. The case was referred back to a different FTT, which concluded that the products are confectionery based on their appearance, texture, mouthfeel, density, taste, and marketing as sweet snacks. The FTT emphasized that these factors outweigh any arguments against them being confectionery. The products are marketed as “healthy snacks for people who get peckish between meals” and “a pleasant change from the chocolate and sugar bars you usually end up with if you are in a ‘snack-grabbing’ mood”.
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