A recent First Tier Tribunal ("FTT") has ruled that flapjacks cannot be classed as cakes for the purposes of UK Value Added Tax (VAT). This means that the supply/sale of such foods will be subject to VAT at the standard rate (currently 20% in 2022/23 tax year).
The case echoes similarities to the 1991 VAT tribunal case concerning Jaffa Cakes: United Biscuits (LON/91/0160), which found that Jaffa Cakes were in facts cakes (rather than biscuits) for VAT purposes, and therefore the supply of such items was zero rated for VAT (VAT at 0%).
VAT on Food
Generally the supply of food for VAT is zero rated, meaning suppliers are not required to charge VAT on such items. However there are several exceptions to this rule, where the supply of f...
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