Upper Tribunal Sides With Morrisons in Confectionery VAT Dispute

UK supermarket chain Morrisons recorded a legal victory in a ruling published Tuesday, after a UK court accepted its appeal in a dispute over whether its snack bars should be considered cakes for sales tax purposes.

The case centered around a request by Morrisons, which was later refused by His Majesty’s Revenue and Customs, for repayment of almost 1.1 million pounds ($1.4 million) in output value-added tax on sales of the two products. Though Morrisons contended the bars should be zero-rated, it had sold them to customers with 20% VAT and later sought payment of output VAT.

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