In Innate-Essence Ltd (t/a The Turmeric Co) v HMRC [2023] UKFTT 371 (TC) (17 April 2023) the FTT decided that a turmeric shot sold by the company qualified for the zero rate of VAT as a food product and was not a beverage.
The Turmeric Co manufactures shots and sells them via its website. The FTT noted from the website that shots are sold in 60ml bottles costing £1.99 each if a subscription is taken for 28 shots per month. The FTT found that the purpose of a shot is entirely functional: to maximise daily ingestion of curcumin.
VATA 1994 Sch 8 Group 1 is clear that if a product other than one of the specifically excepted items such as milk is a beverage it is subject to VAT at the standard rate. The legislation provides examples of beverages but it...
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In Innate-Essence Ltd (t/a The Turmeric Co) v HMRC [2023] UKFTT 371 (TC) (17 April 2023) the FTT decided that a turmeric shot sold by the company qualified for the zero rate of VAT as a food product and was not a beverage.
The Turmeric Co manufactures shots and sells them via its website. The FTT noted from the website that shots are sold in 60ml bottles costing £1.99 each if a subscription is taken for 28 shots per month. The FTT found that the purpose of a shot is entirely functional: to maximise daily ingestion of curcumin.
VATA 1994 Sch 8 Group 1 is clear that if a product other than one of the specifically excepted items such as milk is a beverage it is subject to VAT at the standard rate. The legislation provides examples of beverages but it...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
