HMRC v Snacks: Legal tax battles over the UK's favourites

Gov't sheds light on revised VAT exemption policy

The government has updated its Value Added Tax (VAT) exemption policy, introducing expiration dates for certain tax breaks. These time-limited exemptions now apply to raw materi...

HMRC v Snacks: Legal tax battles over the UK's favourites

There is one tax that has turned a biscuit into a legal battle and a marshmallow into a courtroom mystery, while, at the same time, has caused a lot of confusion for businesses. Value Added Tax (VAT) – a levy that has only been around 53 years – still finds itself the centre of attention at the HQ of HMRC. Introduced in the Finance Act 1972, VAT is considered one of the UK’s most important taxes, accounting for 20 per cent of central government …

UK’s VAT Rules Spark Endless Legal Battles Over Food

Value Added Tax, or VAT, has been a contentious topic since its introduction in the UK in 1972. As one of the UK’s most significant taxes, accounting for 20% of central government revenue in 2022, VAT is a crucial component of the nation’s fiscal landscape. However, its complexity, particularly in the food sector, has led to numerous legal battles and confusion among businesses. Source

As of April 1, the second stage of the Fiscal Transparency Regime comes into effect, a measure that obliges all businesses in the country to discriminate against national taxes on tickets, vouchers and billboards. The regulation, promoted by the national government through Law No. 27,743, aims to transparentize the tax burden and foster greater tax awareness among consumers. Since that month, in addition to invoicing in detail VAT and domestic t…

The measure must be applied by all traders from 1 April in order to make consumers aware of the tax burden on products.

Until now, the obligation to discriminate against VAT was only applicable to large companies, and small taxpayers could choose to include this breakdown in their electronic invoices.