- The UK FTT held that Minerva Research Labs’ collagen drinks were not zero-rated food for VAT purposes.
- The Tribunal relied on a multi-factorial test, giving major weight to how the products were marketed and consumed.
- The drinks were promoted as liquid beauty products and bought for cosmetic or anti-ageing reasons, not as meals or snacks; references to doses, treatment, precautions, and warnings supported standard-rated treatment.
- Minerva’s appeal was dismissed, and HMRC’s refusal to refund about £3.64 million of output tax was upheld.
- Practical takeaway: ingredients matter, but packaging, marketing, presentation, and the ordinary purpose of purchase can be decisive for VAT 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.
