Taxpayers argued Sensations poppadoms were zero-rated due to gram flour, but HMRC saw them as standard-rated, like potato crisps. The tribunal agreed with HMRC, disregarding the product description. Surveys on customer perception were irrelevant. Appeal dismissed. The judge sided with HMRC, considering the product similar to potato crisps in ingredients, packaging, and marketing despite being labelled as poppadoms.
What do our advisers think about it?
The legislation on poppadoms suggests they are zero-rated due to gram flour, but in this case, crisp, advertised as poppadom, was made from potato; therefore, it was standard-rated. Hence, it’s essential to review the ingredients to ensure the correct VAT treatment.

WIM Accountants are here to help businesses with their accounting and taxation needs.

ACCAWe are a member firm of Association of Chartered Certified Accountants

ACCAWe are a member firm of Chartered Institute of Taxation

London Office

37 New North Road
Contact: 02082271700

Our Offices

East London     South London
West London    Cornwall
Bournemouth    Cardiff
Birmingham      Manchester
Nottingham       Stanmore
Ruislip              Harrow on the Hill
North London

Subscribe to Us

Office Hours
Monday        09:30 am - 17:30 pm
Tuesday       09:30 am - 17:30 pm
Wednesday  09:30 am - 17:30 pm
Thursday      09:30 am - 17:30 pm
Friday           09:30 am - 17:30 pm
Saturday      Closed
Sunday        Closed