Jump to content

Biscuit Debate


hevalump

Recommended Posts

  • 4 weeks later...
  • Replies 133
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

[edit] Cake or biscuit?

Under UK law, no VAT is charged on biscuits and cakes — they are "zero rated". Chocolate covered biscuits, however, are subject to VAT at 17.5%. McVities classed its Jaffa Cakes as cakes, but in 1991, this was challenged by Her Majesty's Customs and Excise and the case ended up before the courts.[5] This may have been because Jaffa Cakes are about the same size and shape as some types of biscuit. A question that the court asked itself was "what criteria should be used to class something as a cake?"

 

McVities defended its classification of Jaffa Cakes as cakes. In doing so it produced a giant Jaffa Cake to illustrate that its Jaffa Cakes were simply mini cakes.

 

McVities argued that a distinction between cakes and biscuits is, inter alia, that biscuits would normally be expected to go soft when stale, whereas cakes would normally be expected to go hard. It was demonstrated to the Tribunal that Jaffa Cakes become hard when stale. Other factors taken into account by the Chairman, Mr Potter QC, included: name; ingredients; texture; size; packaging; marketing; presentation; appeal to children; manufacturing process. Contrary to a commonly held belief, whether something is considered a 'luxury item' is not a test for VAT purposes.

 

Mr Potter ruled that the Jaffa Cake is a cake. He further ruled that, if it is relevant, it is not a biscuit. McVities therefore won the case and we do not pay VAT on Jaffa Cakes.[

I never knew that :naughty: I always thought they were biscuits. Well, I s'pose you learn something new every day.

Link to comment
Share on other sites

I never knew that :naughty: I always thought they were biscuits. Well, I s'pose you learn something new every day.

 

Indeed we do. I've actually never though about whether Jaffa Cakes are a biscuit or cake, I've just eaten them :thumb_yello:

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...

Important Information

Privacy Policy