Snack attack: Pringles to pay VAT

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The makers of Pringles are facing a hefty tax bill after losing a court battle over whether the crunchy snack is potato-y enough to be liable for VAT.

Procter & Gamble will be required to pay around 20 million a year in VAT after the Court of Appeal ruled that Pringles are indeed a potato crisp.

Most food is not subject to VAT (as zero rated supplies), with a number of exceptions being standard rated, including potato crisps. Procter & Gamble has consistently maintained that it should not pay VAT on Pringles and last year a High Court Judge ruled that it is not a 'potato crisp product' due to its 'unnatural shape', the fact that it is packaged in tubes and because potatoes make up just 42% of its ingredients. At this point, the ruling had all the hallmarks of the famous Jaffa Cakes...

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01st Jun 2009 16:52

Chip not dip
Good point. The case refers to regular Pringles only as far as I can tell. I imagine the Dippers are classed as something different.

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By Andy3T
01st Jun 2009 11:58

Dippers still avoid VAT?
Hmm, Pringles Dippers are, from recollection treated differently - having been specifically made to taste bland they require preparation (dipping) to consume as otherwise they are unfit for consumption... Given the current to raise the tax take (since the govt is clearly unwilling to cut expenditure) how long until food currently subject to 0% VAT gets shifted to standard rate resolving the continual arguments?

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By Anonymous
22nd May 2009 20:27

Thank you
Thanks Gina.

My son's response was to tell me I was a saddo who needs to get a life!

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22nd May 2009 17:07

Nice one!
I was racking my brains for good pop related puns and not once did that one cross my mind! Well done! I'm sure there are more puns to be had here but they elude me at this point on a Friday afternoon....

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By Anonymous
22nd May 2009 10:03

Surely it should be
"once you pop, VAT on top"

Yeah, I know, I'll fetch me coat...

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