In Nestle v HMRC [2018] UKUT 29 (14 February 2018) the UT found that supplies of Nesquik strawberry and banana powders were not zero-rated under VATA 1994 Sch 8 group 1.
Nesquik is a powder designed and marketed to flavour milk. The powder contains strawberry or banana flavouring (or cocoa) together in each case with some sugar vitamins and minerals. It contains no milk or milk extract. HMRC had refused a repayment claim made by Nestlé the makers of Nesquik on the basis that strawberry and banana Nesquik were standard rated for VAT.
The UT examined the history of the taxation of food in the UK going back to the purchase tax and then the introduction of VAT in 1972. It noted that there had been a clear intention that milk ‘and preparations and extracts thereof’ should be...
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:
In Nestle v HMRC [2018] UKUT 29 (14 February 2018) the UT found that supplies of Nesquik strawberry and banana powders were not zero-rated under VATA 1994 Sch 8 group 1.
Nesquik is a powder designed and marketed to flavour milk. The powder contains strawberry or banana flavouring (or cocoa) together in each case with some sugar vitamins and minerals. It contains no milk or milk extract. HMRC had refused a repayment claim made by Nestlé the makers of Nesquik on the basis that strawberry and banana Nesquik were standard rated for VAT.
The UT examined the history of the taxation of food in the UK going back to the purchase tax and then the introduction of VAT in 1972. It noted that there had been a clear intention that milk ‘and preparations and extracts thereof’ should be...
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:
