IT'S ALL IN THE WAY THE CAKE CRUMBLES

摘要

VAT cases often pass most people by, particularly the consumer and the ultimate bearer of the final bill, as, at the checkout or when making that online purchase, the final price is the only matter of concern. The consumer will probably never notice the effect of a hard fought and long drawn-out case, where the ultimate decision, which could have swung both for and against the desired outcome throughout the process, ultimately, has been held. For the tribunal, the question is whether a purchase is exempt, standard rated or zero rated. Yet, the occasional decision will be on the lips of everyone, in more ways than one. I am, of course, referring to Jaffa cakes. I am sure everyone would answer correctly, were it to be million pound question, as to why a Jaffa cake is a cake and not a biscuit for VAT purposes. However, would you have given VAT a moment's thought if you were to devour a snowball. The sweet variety, covered in coconut, that is.