- Telamara sold nitrous oxide canisters as zero-rated for VAT, claiming they were “food.”
- HMRC disagreed, leading to a tribunal.
- The tribunal ruled N₂O is a propellant, not a food ingredient, and leaves no residue in food.
- N₂O does not qualify as “food” for VAT zero-rating.
- The appeal was dismissed, highlighting ongoing confusion in VAT food classification.
Source: deeksvat.co.uk
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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