FTT Rules Nutella Biscuits Not Partly Chocolate-Covered, Qualify for VAT Zero Rating

• The FTT ruled that Nutella biscuits are not “partly covered” in chocolate for VAT purposes.
• As a result, Nutella biscuits are zero rated for VAT, not standard rated.
• The decision hinged on whether the visible chocolate-like ring constituted a “partial covering” of the biscuit’s outer surface.
• The FTT found that the chocolate ring was not sufficient to be considered a covering, as it was embedded and not forming the outer surface.
• The appeal by Ferrero UK Ltd was allowed, overturning HMRC’s previous decision.

Source: claritaxnews.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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