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@Baz posted:

Ah, but is it a cake , or is it a biscuit?


They are cakes, not biscuits. That's the VAT treatment. Chocolate covered biscuits have VAT added to the cost but chocolate cakes don't. McVitie's weren't happy when HMRC decided that their Jaffa cakes should be standard rated back in 1991, McVitie's took HMRC to the VAT tribunal to try to get this changed. One of the points they made was that cakes go hard when they become stale whereas biscuits go soft. Jaffa cakes go hard when stale so they are cakes. McVitie's won.

The world of taxation can have it's lighter moments

El Loro
@El Loro posted:


They are cakes, not biscuits. That's the VAT treatment. Chocolate covered biscuits have VAT added to the cost but chocolate cakes don't. McVitie's weren't happy when HMRC decided that their Jaffa cakes should be standard rated back in 1991, McVitie's took HMRC to the VAT tribunal to try to get this changed. One of the points they made was that cakes go hard when they become stale whereas biscuits go soft. Jaffa cakes go hard when stale so they are cakes. McVitie's won.

The world of taxation can have it's lighter moments

Baz
@El Loro posted:


They are cakes, not biscuits. That's the VAT treatment. Chocolate covered biscuits have VAT added to the cost but chocolate cakes don't. McVitie's weren't happy when HMRC decided that their Jaffa cakes should be standard rated back in 1991, McVitie's took HMRC to the VAT tribunal to try to get this changed. One of the points they made was that cakes go hard when they become stale whereas biscuits go soft. Jaffa cakes go hard when stale so they are cakes. McVitie's won.

The world of taxation can have it's lighter moments

I remember that El (my husband was a tax officer at the time)
And yet Jaffa's are found on the biscuit shelf

slimfern

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