Navigating VAT Classification: Lessons from First-Tier Tribunal Ruling on Bottled Science Ltd

• First-tier Tribunal ruled on the VAT status of Bottled Science Ltd’s collagen drink, Skinade
• BSL sought to reclaim overpaid VAT on Skinade, claiming it should be zero-rated as food
• FTT determined that Skinade does not qualify as zero-rated food due to its primary purpose being aesthetic enhancement
• The ruling highlights the challenges in distinguishing between consumable beauty products and food items for VAT classification
• Businesses should review product classifications, align marketing strategies with VAT classifications, and seek expert advice to ensure compliance with VAT laws.

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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