Were food products cakes or confectionery for VAT?

The issue in this appeal was whether 36 different varieties of a flapjack/cereal bar product were classed as a zero-rated cake or a standard-rated item of confectionery. Most foods items are zero-rated by virtue of VATA 1994 Sch 8 Group 1. However there are many exceptions.

The First-tier Tribunal noted that the main ingredients in the products were oats syrups and protein. The judge offered to sample and taste all 36 different varieties if the taxpayer felt this would be helpful. It was however agreed that a sample of four was adequate. The judge noted that the products had a ‘crunchy rather than chewy texture’ which was not consistent with eating a cake.

The judge considered how an ‘ordinary reasonable person in the street’ would view the product and how contestants in a game show would describe it if they had to shout out what...