In Thorncroft Ltd v HMRC (TC01536 – 22 November) a company manufactured ‘iced tea concentrates’ which took the form of a dark brown liquid. HMRC issued a ruling that the supplies were standard-rated being excluded from zero-rating by VATA 1994 Sch 8 Group 1 Excepted Item No 4. The company appealed contending that the products were within the definition of ‘tea’ and so were zero-rated under VATA 1994 Sch 8 Group 1 Overriding Item No 4. The First-tier Tribunal accepted this contention and allowed the appeal finding that ‘tea is the principal ingredient’ and specifically distinguishing the earlier decision in Snapple Beverage Corporation (VTD13690).
Why it matters: VATA 1994 Sch 8 Group 1 Excepted Item No 4 provides that beverages are excluded from zero-rating but Overriding Item No...
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In Thorncroft Ltd v HMRC (TC01536 – 22 November) a company manufactured ‘iced tea concentrates’ which took the form of a dark brown liquid. HMRC issued a ruling that the supplies were standard-rated being excluded from zero-rating by VATA 1994 Sch 8 Group 1 Excepted Item No 4. The company appealed contending that the products were within the definition of ‘tea’ and so were zero-rated under VATA 1994 Sch 8 Group 1 Overriding Item No 4. The First-tier Tribunal accepted this contention and allowed the appeal finding that ‘tea is the principal ingredient’ and specifically distinguishing the earlier decision in Snapple Beverage Corporation (VTD13690).
Why it matters: VATA 1994 Sch 8 Group 1 Excepted Item No 4 provides that beverages are excluded from zero-rating but Overriding Item No...
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