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The taxpayer company GlaxoSmithKline Services Unlimited (GSK) appealed against a decision by the First-tier Tribunal that its Lucozade Sport products were beverages falling within the excepted items in VATA 1994 Sch 8 group 1 and should be subject to the standard rate of VAT.
Lucozade Sport is available as a drink and as a powder to be mixed with water. It is is aimed at people carrying out exercise sccording to GSK.
The Upper Tribunal said the First-tier Tribunal was ‘fully entitled’ to conclude that Lucozade Sport was a beverage. The ready-to-drink product was obviously ‘a liquid that is drunk’. It helped achieve rehydration but was also imbided for refreshment and to slake thirst. It was not mainly bought for its nutritional ingredients.
The powder version also fell within Sch 8’s reference to ‘powders… for the preparation of beverages’.
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