VAT Zero Rating: Nitrous Oxide Culinary Use Not Food for Human Consumption

• Telamara Limited appealed VAT assessments totaling £1,477,581.86 for under declared output tax on nitrous oxide supplies for culinary use during periods 02/20 to 05/21
• HMRC argued that 8g nitrous oxide canisters used as cream chargers should be standard rated rather than zero rated as treated by the appellant
• The appellant’s director Mr Parr claimed unfairness because HMRC had been unable to provide clear guidance on VAT liability when the business started but later became certain the supplies were standard rated
• The tribunal’s jurisdiction was limited to determining whether nitrous oxide for culinary use qualifies as food for human consumption under VAT zero rating provisions
• The appeal was dismissed as the tribunal found nitrous oxide canisters do not constitute food of a kind for human consumption and should be standard rated for VAT purposes

Source: bailii.org

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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