- Skinade, a liquid collagen supplement, was subject to a VAT dispute with HMRC
- Bottled Science argued for zero-rating based on nutritional value, but HMRC classified it as a beauty product subject to 20% VAT
- First-tier Tax Tribunal agreed with HMRC, considering packaging, marketing, and primary purpose of Skinade
- FTT emphasized that VAT position of food items should be based on the finished product, not individual ingredients
Source: rsmuk.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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