FTT Rules Giant Marshmallows Are Zero-Rated for VAT

• The FTT held that giant “Mega Marshmallows” are not confectionery and are therefore zero-rated for VAT.
• The key issue was whether they are “normally eaten with the fingers”; the tribunal said “normally” means more often than not.
• It found four main ways the product is eaten and decided that, overall, it is usually consumed by methods other than direct finger-eating.
• The tribunal especially accepted that roasted marshmallows are more often eaten off a skewer, and that s’mores involve the biscuit or the marshmallow as an ingredient rather than finger-eating.
• The case shows VAT classification can depend on typical consumer use and marketing, and HMRC may still appeal.

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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