Two Scottish confectionery firms have won a landmark tax ruling after successfully arguing that their snowballs should be classed as cakes.
Lees of Scotland and Tunnock’s appealed to the First Tier Tax Tribunal to challenge HM Revenue and Customs’ decision that the snowball product should not enjoy the same VAT exemption as tea cakes.
The tribunal had to consider whether the snowball bore the same characteristics that an ordinary customers would recognise as a cake, and were presented with plate of Jaffa Cakes, Bakewell tarts, tea cakes, Lees Snowballs, Waitrose meringues and mini jam snow cakes to help them make up their Read full story ›
Source: The Drum
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