The taxpayer produced Sensations Poppadoms. It claimed these should be zero rated because the key ingredient was gram flour. HMRC said they were standard rated as a product similar to potato crisps – they could be consumed without any further preparation. On the ingredients it said potato granules formed 18% with another 18% being potato starch and as such the product fell within the term ‘potato’ for the purpose of VATA 1994 Sch 8 Group 1 excepted item 5 – which lists the exceptions to the zero-rating legislation for food and drink.
The First-tier Tribunal dismissed the taxpayer’s appeal.
On the taxpayer’s assertion that the First-tier Tribunal had erred in its finding that the term ‘potato’ includes ‘potato granules’ the Upper Tribunal found that it was ‘more than entitled to do so’. The judges could see no basis on which the First-tier Tribunal’s decision could...
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