Nestle's appeal on VAT chargeable on banana and strawberry Nesquick

Love this. The FTT found in favour of HMRC that Nestle's banana & strawberry flavoured milkshake should attract VAT whilst the chocolate flavour may continue to be zero rated as it contains cocoa butter - a food which itself is zero rated. Nestle's argument that all of their milkshakes encourage drinking milk which is a zero rated product didn't have enough sway. Nestle losing it's appeal leaves them with a £4m tax bill. Other anomalies in the VAT system include the fact that fruit salad is zero rated while smoothies made from fruit are standard rated, and chocolate cake is zero rated while chocolate biscuits are standard rated.


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