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Thursday 10 April 2008

Chocolate-covered teacakes

Further to my blog about the vat rating of jaffa cakes and teacakes, I read that "The UK Treasury is facing a £3.5m bill, because of VAT wrongly imposed on a Marks and Spencer teacake, the European Court of Justice (ECJ) has ruled. Customers paid VAT for 20 years before the authorities accepted the product was a cake, which does not command VAT. The UK argued that paying back the total sum would "unjustly enrich" M&S as customers had paid the money. The ECJ ruled that, in principle, VAT had to be repaid in full, but left the final decision to the British courts."

Of particular interest is the section headed "VAT ON CAKES AND BISCUITS -
How various products are classifed by HM Revenue and Customs"

Shame the BBC can't spell classified...

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