The Debate Snowballs

October 28, 2014
VAT
Remember the – ‘Is a JaffaCake a cake or a biscuit, and should there be added VAT tribunal’? (a biscuit covered in chocolate becomes subject to VAT) Solved? Biscuits go soft when stale, cakes go hard.
Well, there was more recently a similar case to determine the VAT rate on Snowballs. Not the icy variety, but those gooey marshmallow treats covered in chocolate.  Two judges tasted the snack to make their decision and declared it a CAKE (sponge-less) so the manufacturers will get a rather nice VAT rebate.
Jaffa cakes are CAKES by the way, we like snowballs too, and in fact our mouths are watering. But should large amounts of money be hinged precariously on the definition of a cake?