Nestle: the delights of VAT zero-rating

Posted on 19 March 2018. Source: Tax Journal

Nestle: the delights of VAT zero-rating

From Jaffa Cakes to chocolate Nesquik.

Although the Upper Tribunal’s (UT’s) judgment in Nestle [2018] UKUT 29 concerns the VAT treatment of milk flavouring powders (Nesquik), the interpretation of VATA 1994 Sch 8 Group 1 will be of wider application. Anything concerning Nesquik is perhaps no great issue and would only interest readers who have young children. However, the importance of the case is the general application of the zero-rate of VAT and the oddities and anomalies that this area of legislation gives rise to.

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This article was originally published by Tax Journal.