TAX

摘要

Smoothie maker Innocent has hired PricewaterhouseCoopers to act on its behalf at a tribunal hearing to get its crushed fruit drinks exempted from VAT. The co-founder of Innocent, Richard Reed, said it was 'absurd' that fast food items are excused from VAT while his own company's drinks - which contain healthy components such as two portions of fruit - are fully taxed.rnAccording to UK tax rules, consumers do not have to pay VAT on food and drinks that are seen to be 'essential' but they must pay the indirect tax on 'luxury' items such as fruit juices.rnReed said: 'Fruit isn't taxed as long as it's whole. Just because we crush it and put it in a bottle we are subject to full VAT.'rnGrant Thornton said that Innocent's application could be problematic since tax rules on food are set under European law 'and cannot be tinkered with individually'.