McVitie's has requested the removal of Jaffa Cakes from a biscuit museum's display because the treat is legally classified as a cake for VAT purposes. This follows a historical legal battle that established Jaffa Cakes as cakes, which are exempt from VAT, while biscuits attract a tax. The museum's curator expressed disappointment at the removal of the exhibit. The incident has reignited public debate and has garnered attention on social media.
The David and Goliath-style row, which some suggested had been orchestrated by McVitie's to boost sales, has reignited the debate over Jaffa Cakes' classification.
The subtleties of the is it a cake or biscuit? debate have likely filled many a tea break, but the tax law is clear: biscuits are zero-rated.
The manufacturer McVitie's insisted they were cakes, which are zero-rated. It won, and those smashing orangey bits can be enjoyed tax-free.
Allow us to be clear: Jaffa Cakes are, in fact, cakes. Some would say the clue is in the name on the box.
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