Key Facts
- •United Biscuits (UK) Ltd appealed a VAT assessment on its 'Blissfuls' biscuit product.
- •The dispute centered on whether the Blissfuls biscuit is 'partly covered with chocolate or some product similar in taste and appearance' under VATA 1994 Sch. 8 Group 1 Excepted Item 2.
- •The Blissfuls biscuit consists of a biscuit cup base, chocolate hazelnut layer, chocolate layer, and a smaller McVitie's biscuit logo on top.
- •HMRC argued the biscuit is partly covered in chocolate, while United Biscuits contended the chocolate is a filling, not a covering.
- •Approximately 80% of the biscuit is covered, according to the Appellant's calculations.
Legal Principles
Zero-rating of goods under VATA 1994, Schedule 8, Group 1.
VATA 1994, section 30 and Schedule 8 Group 1.
Statutory interpretation should prioritize the ordinary meaning of words, considering the facts of each case.
R&C Commrs v Proctor & Gamble Ltd [2009] EWCA 407; Customs and Excise Commissioners v Ferrero UK Ltd [1997] STC 881.
The 'ordinary man' test should be applied to assess whether a biscuit is 'partly covered'.
Ferrero UK Ltd (LON/94/1149) (Decision 13493); R&C Commrs v Proctor & Gamble Ltd [2009] EWCA 407.
Outcomes
Appeal dismissed.
The Tribunal found that the area of the biscuit not covered by the biscuit logo is covered by a layer of chocolate. The ordinary meaning of 'partly covered' was applied, finding that even partial chocolate coverage satisfies the legislation.