“A supply of goods … is zero rated by virtue of this subsection if the goods … are of a description … specified in Schedule 8 …”
“3. The issue is whether a snowball is “cake” as contemplated in item 2 of the excepted items to item 1 in Group 1 of Schedule 8 to the VATA 1994, and the test of whether a snowball is a cake is whether it displays “enough of the characteristics of a cake that it should be classified as such”. 4. The words in the statute must be given their ordinary meaning. 5. If a product has the characteristics of two statutory categories (e.g. cake, confectionary), then it should be placed in that category for which it has sufficient characteristics to qualify. 6. The test is the view of the ordinary person, informed as to: (6.1) Ingredients; (6.2) Process of manufacture (6.3) Unpackaged appearance (including size) (6.4) Taste and texture; (6.5) Circumstances of consumption (including time, place and manner of consumption); (6.6) Packaging; (6.7) Marketing.”
“very like a brownie and a bit like a tiffin”; “rich taste of brownie” “taste like real chocolate brownies”; “chewy, chocolatey, nutty and not too sweet”; “not like a regular brownie”; “healthy chocolate bar”; “nothing like a brownie”; “moist and lovely”; “grainy”; “fruity, chewy and chocolatey with a pleasant texture”
“It is our policy that there is a difference between flapjacks and cereal bars. This policy development arose because, at the inception of VAT, flapjacks were widely accepted as cakes, and cereal bars were not widely available, if at all. Flapjacks are accepted as being a cake of common perception and widespread home-baking, not because of any specific reasoning behind such factors as their recipe, ingredients or the manufacturing process. However, since that time, the difference between flapjacks and cereal bars has narrowed to the development of cereal bars and their proliferation on the market. The amendment to the law in 1988 was made to bring products, particularly cereal bars, within the scope of the standard rate by defining confectionary as sweetened items of prepared food normally eaten with the fingers. As a result cereal bars were standard rated as only as they are sweetened. The problem that has arisen is that a flapjack is, historically, accepted as a cake, but should probably bow be categorised as a cereal bar, and therefore standard rated, within the legislation. … We therefore define flapjack narrowly, as it is intended to only apply to that product as it was at the inception of VAT. We allow the zero rating of standard flapjacks along with minor variations, for example when ingredients like dried fruit, raisins, chocolate chips etc. are added. We view the addition of toppings similarly such as a layer of chocolate or yoghurt. We draw a line between flapjacks and cereal bars at any alteration to a flapjack that takes it into a cereal bar. We interpret this with our policy that a traditional flapjack consists solely of oats. The addition of other cereals to the product turns it into a cereal bar, as it is no longer a traditional flapjack”
“Cakes includes sponge cakes, fruit cakes, pastries, eclairs, meringues and jaffa cakes. Though there is no accepted definition of the word cakes [sic] often made from a think batter containing flour and eggs, and aerated in the process of cooking. They will normally be marketed as cakes, through bakeries and supermarkets rather than confectionary outlets, and will be displayed with cakes and biscuits rather than the confectionary section. The style of packaging used will also normally follow the pattern for bakery products, with a number of individual portions boxed and cellophane wrapped so the contents are revealed. They are usually eaten as part of a meal rather than between meals as confectionary. … in the case of Goodfellow and Steven Ltd … the tribunal found there were no objective tests which can be applied to determine whether something is a cake and relied on the impression which would be made on the average man in the street. … The following products, described below, are all zero rated as cakes: · Flapjacks · Chocolate crisp cakes (‘crunch’ cakes) · Caramel shortcake · Marshmallow teacakes · Lebenkuchen · Traditional Japanese sweetmeat”
“43. We make no apology that this decision is largely concerned with extensive findings in fact. The issue is not one of law but one of fact albeit, of course, we have regard to the relevant law. 44. As we indicated above, we carefully considered the various factors, identified by the authorities, which come into play when looking at the characteristics of snowballs. … 47. In summary we have taken from the authorities the numerous factors that fall to be weighed in the balance ... the fact that there are no objectives tests and that our starting point is the view that will be taken by the ordinary man in the street who has been informed as we have been informed. … we are asking, as was asked in Goodfellow whether the ordinary person would have concluded that (s)he had been offered a cake once (s)he had eaten it rather than being sold short by being offered a mere confection. 53. A snowball … is not out of place on a plate of cakes”