Marks & Spencer's innovative strawberry and cream sandwich, inspired by the popular Japanese strawberry sando, is creating a stir not just among consumers but also among tax experts. The item is under scrutiny to determine whether it's classified as a standard sandwich, which is zero-rated for VAT, or as a confectionery item, which is subject to a 20% VAT. Experts mention that the sweetened nature of the bread and its design for finger consumption strengthen the argument for confectionery classification. The situation mirrors historical tax debates, like that of Jaffa Cakes, demonstrating the complexities of VAT legislation.
"If the bread is sweetened and designed to be eaten with fingers, the case for classifying it as confectionery is surprisingly strong," said Simon Knivett, VAT manager at HW Fisher.
Max Schofield, a barrister at Devereux Chambers, said the outcome of that case could have broader implications: "If giant marshmallows, because they're eaten with fingers and are sweet, fall under confectionery rules, so could sweet sandwiches."
Adam Craggs, a partner at law firm RPC, added: "The M&S strawberry sandwich may soon join the curious canon of VAT case law. The legislation is notoriously complex and often leads to outcomes that can feel arbitrary or absurd."
Collection
[
|
...
]