Walkers Snack Foods Limited v The Commissioners for HMRC
Decision date: 8 June 2023
Neutral citation: [2024] UKFTT 31 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
Walkers appealed HMRC's decision that its Sensations Poppadoms are standard-rated as falling within Excepted item 5 of Schedule 8 VATA 1994. The Tribunal found the products are packaged for consumption without further preparation, contain substantial potato-derived content (c.40%) including potato granules that count as "the potato", and on a multifactorial assessment are "similar to" potato crisps; the appeal was dismissed. Fiscal neutrality did not require a different outcome.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
The Tribunal treated potato-derived ingredients that include whole potato tissue (e.g. cooked dried potato granules) as capable of being "the potato" for Excepted item 5 and held that where a product contains multiple potato-related ingredients their potato content should be assessed in aggregate to determine whether the product is "made from" potato or potato starch; similarity to potato crisps is to be decided by a multifactorial assessment of characteristics.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal observed that the product name (e.g. "poppadom") is not determinative for VAT classification, and that marketing, packaging and retailer placement are relevant factors in assessing similarity; HMRC guidance and lists are not binding.