A campaign to have fruit smoothies zero-rated for VAT on the basis they are
food rather than a beverage could be a lost cause because of litigation two
years ago that failed to establish the same point.
But observers say this argument failed in the 2007 Kalron Foods High Court
decision which ruled smoothies constitute a drink and should therefore be
subject to the standard rate.
Marc Welby, VAT partner at
BDO Stoy Hayward, said
it will be very difficult for Innocent to establish a plausible case why the
smoothies should be zero rated.
‘Even in the local Waitrose its right next to the fruit juices which are
standard [VAT] rated…they haven’t helped themselves so far as the historical
positioning,’ he said.
According to Lorraine Parkin, a VAT partner at
despite most VAT case studies having already been litigated, there are still ‘a
lot of grey areas, especially in basic and non-basic foods.’
IR35 employment status tax rules may result in workers losing part of their income, says professional body
Committee expresses concern about costs to businesses and April 2018 implementation date
Drastically fewer offices for HMRC in the hope to reduce their running costs
An 80% increase in additional revenue for HMRC coincides with a crackdown on income tax avoidance