25 Mar 2018

Zero rating dispute

13 March 2018

Phoenix Foods Ltd (TC6296)

Liability of bicarbonate of soda used in cooking

The issue in this case was straightforward: is bicarbonate of soda sold on supermarket shelves in the food section subject to VAT at the zero or standard rate?

The taxpayer said it was ‘food of a kind used for human consumption’. Its packaging referred to the product as a ‘raising agent for soda bread, cookies and gingerbread’. The taxpayer said it should be treated as zero rated (VATA 1994, Sch 8 group 1 item 1).

HMRC disagreed, ...

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