A company successfully argues its extra large mallows are a baking ingredient rather than a snack
The firm says Mega Marshmallows are a S'more ingredient, not a snack in their own rightA company has won a legal battle with the government to try to avoid paying VAT on its over-sized marshmallows.However the firm has won the right to challenge the huge bill by arguing its Mega Marshmallows are not confectionery so should not be liable for the 20% tax.VAT is payable on confectionery but products can be zero-rated if they are used for cooking.
Its lawyer said Mega Marshmallows were 5cm in height, compared to 2.5cm for regular marshmallows, and intended for roasting rather than eating out of the bag as snacks. HMRC lawyers argued Mega Marshmallows could still be eaten "on the go" like a bag of sweets so should incur VAT.
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