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In the case of Corte Diletto UK Ltd, the Appellant argued that their product “Nouri Health Balls” qualified for zero-rating as a cake. HMRC disagreed and contended that the product should in fact be standard-rated as confectionary.

Once the case reached the First-Tier Tribunal they found that as the product was an item of sweetened food that was prepared and eaten with the fingers they were classified as confectionary for VAT purposes and VAT was due at the standard rate.

Classifying food items for VAT purposes is fraught with potential for misunderstanding and misinterpretation. To ensure you or your business is handling the VAT treatment of food items correctly, please call our free VAT helpline.

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