Tax competition: The potato challenge
The complexities of VAT rules in application to modern foodstuffs are legendary and it seems, never ending. In the latest case to tie up the courts, it may not surprise those in tax to find that not all "crisps" are actually crisps (standard rated for VAT) as you might suppose, some are more akin to cakes (exempt for VAT).
The high court recently ruled that 'Pringles' are made of dough and their unnatural shape and consistency means that they are not crisps.
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Thanks, Nichola
Always happy to help!