VAT News:

Thick Juice Shots Standard Rated

In a recent Tribunal appeal, it was successfully argued by Unilever Best Foods UK Limited that the shots were a nutritional drink and not a traditional thirst-quenching drink. These juices contain fruit and vegetables, but it was argued that they were not designed to quench the thirst and should not be zero rated.

The Chairman accepted the findings of the 1993 Tribunal decision of Bioconcepts Limited that the word "beverage" does not mean all drinkable liquids but, rather, those that are taken to increase bodily liquid levels, to satisfy the thirst or to give pleasure.

The Chairman considered the shots against these criteria and concludes that the shots are not a beverage but fall squarely within the words food of a kind used for human consumption. The appeal was allowed.

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