Zero-rated cake or standard rated as an item of confectionery?

The taxpayer sold truffle balls originally marketed as healthy ‘truffles’ but later described as ‘vegan healthy balls’. They contained various ingredients including dates sultanas apricots and almonds were gluten free with no added sugar and measured about 3cm across.

The taxpayer said the products were not confectionary. They had the characteristics of a cake so should be zero rated within VATA 1994 Sch 8 group 1.

HMRC’s view was that the balls were standard rated as confectionery. The items had the size appearance packaging and taste of confectionary and were marketed in a similar way to confectionary.

The First-tier Tribunal agreed with HMRC. The judges noted that the products had originally been called truffles but had been renamed ‘healthy balls’. On this they said: ‘With apologies to Shakespeare we observe that “a truffle by any other name would taste as...