Poppadom snacks are standard rated

The taxpayer argued that its sales of Sensations Poppadoms were zero rated because the key ingredient was gram flour. HMRC said they were standard rated as a product similar to potato crisps. Further the packaging indicated that the product could be consumed without further preparation being needed – for example they could be eaten with a dip - and 18% of the ingredients were potato granules with another 18% being potato starch. As such the items fell within the term ‘the potato’ for the purpose of VATA 1994 Sch 8 Group 1 excepted item 5 - which list the exceptions to the zero-rating legislation for food and drink.

The taxpayer appealed.

The First-tier Tribunal agreed with HMRC that the taxpayer’s description of the product as a poppadom ‘unlike potato crisps’ was irrelevant. Rather this meant that the word ‘poppadom’ was not a...