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The taxpayer company made Pringles a savoury snack containing around 42% potato.
HMRC decided that Pringles should be standard rated because they were potato crisps made from potato flour or potato starch within VATA 1994 Sch 8 Group 1 excepted item 5 (Group 1 concerns zero rating on food).
The company appealed. The tribunal agreed with HMRC but on the taxpayer’s subsequent appeal to the High Court that decision was overturned in the company’s favour. HMRC appealed.
The judges in the Court of Appeal said the main issue was whether the decision of the VAT tribunal was wrong in law.
The question to be answered was whether Pringles were similar to potato crisps and made from potato potato flour or from potato starch. It did not call for over-elaborate legal analysis rather it was a short practical question which required a short practical...
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