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April 2024

Mega VAT Win for Innovative Bites

By VAT news

The Upper Tier Tribunal has released its decision in the Mega Marshmallows case and agreed with the First Tier Tribunal decision– Mega Marshmallows are NOT confectionery and are therefore zero rated.  The decision confirmed that:


  • a number of factors should be taken into account when determining whether the product is confectionery or food (a ‘multi-factorial assessment’);
  • these factors include physical positioning in retail settings, packaging, labelling, marketing and how they would usually be eaten;
  • it found that the average person would consume the Mega Marshmallows by roasting them on a barbecue (evidenced by higher sales volumes over the warmer months);
  • it found that the size/packaging was not comparable with other sweets/confectionery to be eaten ‘on the go’

This case was instructed by The VAT Consultancy, with Tim Brown as Counsel.  The VAT treatment of food products can be extremely difficult to determine and VAT has a material impact on pricing given the products are ultimately sold in a retail environment.  We continue to see wide ranging challenges from HMRC in this area so get in touch if you would like to discuss this case or if you would like help in classifying your own products for VAT purposes.


To discuss how we can help contact us today or call us on +44 203 2806902.