McVitie’s biscuit VAT case

There has been yet another VAT involving case whether something which is edible by humans is food for VAT purposes. Food is zero rated but confectionary is standard rated for VAT.

This case involved a biscuit manufactured by McVitie’s called a Blissful.

The relevant tax rules state that a biscuit will be standard rated if it ‘wholly or partly covered with chocolate or some product similar in taste or appearance’.

McVitie’s Blissful biscuits have a layer of chocolate in between a base and a top made of biscuit.

The tribunal concluded that it did not matter whether the chocolate was above or below a biscuit for it to ‘cover’ the biscuit. Accordingly McVitie’s Blissful biscuits are subject to VAT at standard rate.