Those of you who remember those rather annoying adverts will also note that once Pringles started their VAT liability argument, they just couldn't stop!
However, the Court of Appeal have finally concluded that HMRC were the right to contend that the snacks should be standard rated, despite the content of potato falling below 50% of total ingredients.
It is likely HMRC are wiping the sweat from their brows (rather like me as our office air con has broken down this week!), imagine if the ingredients % were the main decision for liability as the High Court had seemed to suggest, it could have opened up a world of manipulation in the food arena!
Anyone who stopped charged VAT based on the High Court decision will potentially have a voluntary disclosure to now be made.
Thursday, June 4, 2009
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