Jaffa Cakes - Categorization As Cake or Biscuit For VAT

Categorization As Cake or Biscuit For VAT

In the United Kingdom, value added tax is payable on chocolate-covered biscuits, but not on chocolate-covered cakes. McVities defended its classification of Jaffa Cakes as cakes at a VAT tribunal in 1991, against the ruling that Jaffa Cakes were biscuits due to their size and shape, and the fact that they were often eaten in place of biscuits. McVities insisted that the product was a cake, and according to rumour produced a giant Jaffa Cake in court to illustrate its point. After assessing the product on eleven criteria, including "texture", "attractiveness to children" and "consistency when stale", the court found in McVities' favour, meaning that VAT is not paid on Jaffa Cakes in the United Kingdom.

Read more about this topic:  Jaffa Cakes

Famous quotes containing the words cake and/or biscuit:

    Much of the ill-tempered railing against women that has characterized the popular writing of the last two years is a half-hearted attempt to find a way back to a more balanced relationship between our biological selves and the world we have built. So women are scolded both for being mothers and for not being mothers, for wanting to eat their cake and have it too, and for not wanting to eat their cake and have it too.
    Margaret Mead (1901–1978)

    “He is so polite!”MYes, he is always prepared with a biscuit for Cerberus and is so timid that he assumes everyone is Cerberus, even you and me—that is his “politeness.”
    Friedrich Nietzsche (1844–1900)