Morrisons has lost a million-pound tax battle after a judge ruled a snack bar based on date fruit is confectionery and not a cake.
The supermarket said it had overpaid £1million in VAT to HM Revenue and Customs over 18 types of the bar, which they said had been wrongly rated for tax, between 2014 and 2018.
In February Morrisons appealed against HMRC s decision to class Nakd bars as confectionery and its refusal to repay £1,000,163.39.
Morrisons claimed it overpaid to HM Revenue and Customs as its Nakd bars should have the zero VAT rating as cakes
The supermarket argued the bars, coming in fruit and nut mixes including banana bread and lemon drizzle, are not confectionery and should have the same VAT zero rating as cakes.
By Press Association 2021
The Morrisons store in Wakefield, Yorkshire which will host drive-through vaccinations from Monday as the government continues to ramp up the vaccination programme against Covid-19 (Danny Lawson/PA)
Supermarket giant Morrisons has lost a million-pound tax battle after a judge ruled a date-based snack bar is confectionery and not a cake.
The retailer claimed it had overpaid £1 million in VAT to HM Revenue and Customs (HMRC) over 18 types of the bars, which they said had been wrongly rated for tax, between 2014 to 2018.
In February, Morrisons appealed to a tax tribunal against HMRC’s decision to class Nakd bars as confectionery, as well as appealing against the tax body’s refusal to repay £1,000,163.39 in VAT paid on the bars.