Size does matter when it comes to marshmallows
The weird and wonderful world of VAT on food becomes ever more convoluted. This case that shows mega marshmallows can be zero-rated for VAT purposes – unlike their regular-sized counterparts – gave the tribunal something to chew on.
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This is a disaster
I munch on Frosties as if they are sweets, hands and fingers. How much VAT do I owe?
Would it be better if I poured them into a bowl and eat them with a spoon?
There is no science on VAT and human consumable products. Packaging is the new tax avoidance programme.
Frosties! - you should be more concerned about your teeth than VAT!
Cornflakes with sugar so much better........
Not quite. I think he was inferring that cornflakes covered in gritty granulated sugar are better than cornflakes covered in an icing sugar glaze.
My son a month or so back returned from the USA with mega marshmallows (these were at least 4 times the size of the regular ones, not two times, maybe even six times as large) We ate them in similar manner to the regular ones, just in bites rather than whole, no toasting necessary.
Sorry, but I increasingly see little future for VAT in its present form if we are serious about economic growth, cutting red tape and getting on with what matters. The word ‘if’ is doing an awful lot of lifting in that sentence mind you.
Tax disputes are often about boundaries - is your transaction, asset etc on the exempt side or the taxable side? Moving the boundary to a different place won't stop such disputes between taxpayers and HMRC.
I had a VAT query a few weeks back, on a similar scenario (it was cake, confectionery, or chocolate bar), and so I was particularly interested when I read this. It's a shame we don't get the pictures of the product. That seemed to be all my colleagues were interested in.
Seriously, this is the sort of stuff that makes VAT interesting. remember, VAT is the "simple" tax.
It seems we need not just the item, but the entire wrapper, where it is stocked, and in this case what time of year it sells
This story brings to mind the Stanford Marshmallow experiment.
https://en.wikipedia.org/wiki/Stanford_marshmallow_experiment.
Although the Tribunal's decision was, arguably, less predictable than the research findings?
The politicians will not risk the electoral fallout from putting standard rate VAT on all food, so we are left with the tax system trying to support the price of basic foodstuffs. Applying VAT and increasing Univeral Credit/NMW is not possible, so long live the craziness of the VAT theme park.
No!
I googled it too, and I suggest that you DO NOT because it sounds absolutely disgusting.
Its a sort of instant obesity pill
Just come back from visiting relatives in the US. Trying to sort out wi-fi access was "fun" since what they call the pound sign is actually a hash prompt...
And the Office of Tax Simplification rolls in it's grave. Again.
Indeed, this is happening so often that it might be worth harnessing the untapped energy of grave-rolling and perhaps using it to top up our new PM, who appears to be lacking power in the regions directly above her mouth.
Just shows two things:
1. the VAT system is not fit for purpose and
2. Vat 'experts' are mainly to blame for the increasingly farcical decisions on what is VATable.
I had a dream I’d eaten my pillow and when I woke up my oversized marshmallow had disappeared.
I actually like the logic of this.
Utterly barmy, but logical. Sort of.
They now need a new rule about exactly what size of marshmallows are standard rated, and what are not, and a new inspectorate measuring them.
For the record my kids eat the bigish ones, never toasted.