Shots supplier drinks in zero-rating decision
The distinction between a drink and a beverage led to thrills and spills in this VAT-liability case concerning turmeric health shots.
Replies (10)
Please login or register to join the discussion.
HMRC should appeal on the basis that the turmeric shots are not a food/drink if even the founders of the company find it an acquired taste to consume!
The world may be barmy but it's clear our tax system has lost the plot completely. Does this mean that Marmite flavoured drinks are not actually beverages....
So taking those tests, if I go to the pub tonight, have a few beers, and come home, they are beverages and VAT is properly payable.
However, when I wake tomorrow I've got a head like a robbers dog as a result, so I go for a hair of the dog to alleviate my hangover, then tomorrow's beer is not a beverage but is a drink, and so can be zero rated.
A reasonable conclusion
The guest test is daft
People would consider drink and beverage to mean the same thing.
And Calpol is medicine. How did that end up being mentioned
Are haliborange confectionary because of the nice flavour and looking like TicTaks?
What I find more amazing is that there are that many mugs who might buy these.
Probably also buy those weird yoghurt things and smear very expensive anti-aging cream on every night.
If you want a big shot of turmeric, get thee in the kitchen and knock up a nice bit of dhal.
Great article seems fairly straightforwardly zero rated here - do vat office use any common sense when choosing cases they lose wasting everyone’s time? Probably not
Everything else at HMRC is running so smoothly that there is plenty of time to take a test case or two. Just for the japes you understand.
I was using Turmeric mixed with black pepper and salt as medicine because my stomach was big and an Indian friend of mine advise me to take once a day and I use it for over a year and stopped because I was getting too slim, so I dont understand why it should be taking as a drink and not beverage. I would never give this to my guest if they were coming for a drink, it tastes horrible