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Cakes, biscuits and value added tax

8 votes
? by MirriLondon

Jaffa cake - is it a cake, is it a biscuit?

http://news.bbc.co.uk/1/hi/world/europe/7340101.stm

Anyway. Someone please explain to me how a cake doesn't attract VAT?

I don't understand the VATmat.

MirriLondon | 10 Apr '08, 13:26 | Send note | Report this | Reply

cake is food

biscuits are a luxury

I believe that's the line

Arfie | 10 Apr '08, 13:27 | Send note | Report this | Reply

Ah, okay.

Are sanitary products a luxury too?

MirriLondon | 10 Apr '08, 13:30 | Send note | Report this | Reply

no

nor books

Arfie | 10 Apr '08, 13:33 | Send note | Report this | Reply

food - 0%

sanitary products - 5% i think

_vikram | 10 Apr '08, 14:59 | Send note | Report this | Reply

Chocolate-covered biscuits vs 'standard' biscuits

Biscuits are exempt from VAT if they're not a 'luxury' foodstuff, ie, they don't have chocolate on them. Plain digestives = no VAT, chocolate digestives = have VAT.

For some reason, cakes, no matter how chocolate-covered or luxuriant they are, are not considered 'luxury' foodstuffs.

HughDoVoodoo | 10 Apr '08, 13:42 | Send note | Report this | Reply

If it goes hard when it's out of date it's a cake.

If it goes soft, it's a biscuit.

I think Jaffa cakes go hard, so it's a cake.

ClicheGuevara | 10 Apr '08, 13:29 | Send note | Report this | Reply

This should tell you

most of what you might ever like to know about cakes and biscuits. It also has a recipe for 'Underpant Toast'.

http://www.nicecupofteaandasitdown.com/biscuits/index.php3

Bushido | 10 Apr '08, 13:31 | Send note | Report this | Reply

I just had a Jaffa Cake Muffin

That was definitely a cake

DanielKelly | 10 Apr '08, 13:32 | Send note | Report this | Reply

i assume this has something to do with those teacakes

(the marshmallow one not the toasting ones) as pointed out cakes go hard when out of date. i don't know what they do, but at the same time, marshmallow is hardly anything other than luxury, and it's coated in chocolate. i don't know what this all means though, is it a cake? who knows!?

pieces_of_reece | 10 Apr '08, 13:51 | Send note | Report this | Reply

aww, man

I haven't had those in forever. I may have to get some later. Thanks Steve!

MirriLondon | 10 Apr '08, 14:55 | Send note | Report this | Reply

:)

i kinda want some too, try leaving one to go off and see if it's a cake or not.

pieces_of_reece | 10 Apr '08, 15:01 | Send note | Report this | Reply