- M&S’s Strawberries & Creme Sandwich is inspired by the Japanese fruit sando and is causing debate over taste and VAT classification.
- Food not supplied in catering is generally zero-rated for VAT, but confectionery is standard-rated at 20%.
- The classification of the sandwich as confectionery or cake affects its VAT rate and price.
- Confectionery includes chocolates, sweets, and sweetened finger foods, while cakes are made from batter with flour and eggs.
- M&S describes the product as sweetened bread with strawberries and cream cheese, resembling a dessert but sold as a sandwich.
- The VAT classification may lead to legal decisions, similar to past cases like Jaffa Cakes.
- Ed Saltmarsh from ICAEW highlights VAT system complexities and suggests the UK could learn from other countries.
Source: icaew.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.
