In HMRC v Innovative Bites Ltd and another [2025] EWCA Civ 293 (21 March) the Court of Appeal (CA) decided that absent absurdity or the like confectionery in the context of VATA 1994 Sch 8 Group 1 includes any product falling within note 5 of the legislation because that is the effect of note 5 when interpreted using the ordinary principles of statutory interpretation.
VATA 1994 Sch 8 Group 1 provides for the zero rate of VAT to apply to food but refers to excepted items which are subject to the standard rate of VAT. Excepted item 2 is: ‘Confectionery not including cakes or biscuits other than biscuits wholly or partly covered with chocolate or some product similar in taste and appearance.’ Note 5 to the legislation says that the word ‘confectionery’ in excepted item 2 ‘includes chocolates sweets and biscuits; drained glacé...
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In HMRC v Innovative Bites Ltd and another [2025] EWCA Civ 293 (21 March) the Court of Appeal (CA) decided that absent absurdity or the like confectionery in the context of VATA 1994 Sch 8 Group 1 includes any product falling within note 5 of the legislation because that is the effect of note 5 when interpreted using the ordinary principles of statutory interpretation.
VATA 1994 Sch 8 Group 1 provides for the zero rate of VAT to apply to food but refers to excepted items which are subject to the standard rate of VAT. Excepted item 2 is: ‘Confectionery not including cakes or biscuits other than biscuits wholly or partly covered with chocolate or some product similar in taste and appearance.’ Note 5 to the legislation says that the word ‘confectionery’ in excepted item 2 ‘includes chocolates sweets and biscuits; drained glacé...
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