Phoenix Foods Limited and HMRC [2018] UKFTT 018 (TC)
9th January 2018
Tim Brown represented the Appellant in the First Tier Tribunal, which involved whether the supply of bicarbonate of soda should be standard or zero-rated?
The Appellant’s case was bicarbonate of soda, when sold packaged intended for culinary use, fell within the definition of food of a kind used for human consumption and was therefore zero-rated.
HMRC’s case was that the product had other uses aside from being used in baking e.g. as a cleaning product, and therefore should be standard-rated.
The FTT held when bicarbonate of soda is used as a baking ingredient, it contributed significantly to the final product of baking being palatable by imparting texture to the food. It was an essential ingredient and so should fall within the classification.
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