Upper Tribunal to Hear Appeal on VAT Status of Collagen Drink Marketed for Cosmetic Benefits

• Bottled Science Ltd sought to appeal a tribunal decision that its collagen drink, Skinade, is not zero-rated for VAT as food.
• The tribunal found Skinade is standard-rated because it is marketed and consumed mainly for cosmetic or health purposes, not as food.
• Bottled Science argued the tribunal misapplied the definition of “food,” overemphasized marketing, and used too narrow a test.
• The Upper Tribunal granted permission to appeal on all grounds, finding arguable errors of law.
• The case is important for companies making functional beverages, as it may clarify VAT rules for products with health or cosmetic claims.

Source: rpclegal.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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