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Author Topic: Shock ruling - Pringles are crisps  (Read 4326 times)

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Offline Miss Demeanour

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Shock ruling - Pringles are crisps
« on: May 20, 2009, 05:01:18 PM »
The taxman has taken a multimillion-pound bite out of Pringles after winning a VAT legal battle

Pringles are crisps, and therefore subject to VAT regulations, judges have ruled

Three judges at the Court of Appeal were asked to decide whether Pringles are similar to potato crisps and made from the potato - and therefore liable for Value Added Tax.

A VAT Tribunal decided they were made from potato but a High Court judge said they were not - and appeal judges have now reinstated the tribunal's decision, leaving makers Procter and Gamble liable for £100 million of past VAT and £20 million a year in the future.

Food products are usually zero-rated for VAT, but one of the exceptions is the humble potato crisp.

The VAT Act 1994 singles out the snack for tax purposes with the words: "Any of the following when packaged for human consumption without further preparation, namely, potato crisps, potato sticks, potato puffs and similar products made from the potato, or from potato flour, or from potato starch, and savoury products obtained by the swelling of cereals or cereal products; and salted or roasted nuts other than nuts in shell."

During the hearing of the case last month, Roderick Cordara QC argued that the product should have a sufficient content of potato to give it a quality of what he called "potatoness". He said Regular Pringles, which contain 42% potato, 33% fat and flour cannot be said to be "made from potato".

But the appeal judges disagreed.

Lord Justice Jacob said the VAT Tribunal was right to find Pringles are sufficiently similar to potato crisps to bring them into the tax net. He said he could not agree with Mr Justice Warren in the High Court who found that the potato content of Pringles should be disregarded when considering the question of similarity to crisps.


Can you imagine going to court to argue about the potatoness of something .... noooo: noooo: noooo:

Why are crisps an exception - they are food  - albeit not good for you - but yummy never the less -   cloud9:


Skubber

Offline Nick

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Re: Shock ruling - Pringles are crisps
« Reply #1 on: May 20, 2009, 05:15:15 PM »
Is chocolate food or is that VATable?  rubschin:
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Offline Pastis

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Re: Shock ruling - Pringles are crisps
« Reply #2 on: May 20, 2009, 05:19:45 PM »
Favourite flavour?

Sour cream & Onion for me  cloud9:
Like the Buddhist said to the hot dog vendor...
"Make me one with everything"

Offline Snoopy

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Re: Shock ruling - Pringles are crisps
« Reply #3 on: May 20, 2009, 05:20:06 PM »
When I had a pub I discovered that Pork Scratchings are "Cooked meats" and thus subject to VAT. Had a hell of a row with a VAT inspector because we did not ring Scratchings up on a separate button on the till and thus account for the VAT. As I pointed out in my usual conciliatory manner. It would cost me £500 for a new till. I sold, on average, a card (24 packs) of Scratchings a month. Where was the f*cking logic in his request that I get a new till to account for that? He left in a huff to seek further advice and two of the b@st@rds came back the following week when I solved the problem by ripping the card of Scratchings off the wall and throwing them in the bin. They left. I took the Scratchings out of the bin and put them back on the wall.
Dickheads!
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Offline Miss Demeanour

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Re: Shock ruling - Pringles are crisps
« Reply #4 on: May 20, 2009, 05:24:50 PM »
Favourite flavour?

Sour cream & Onion for me  cloud9:

Ditto ...I can't do a whole tube though  - I have tried  redface:
Skubber

Offline tel

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Re: Shock ruling - Pringles are crisps
« Reply #5 on: May 20, 2009, 05:27:31 PM »
I find them very boring.

If you saw how many scratchings were sold in our locals you would be amazed.

TMR will confirm this.

     RTFM

Offline Snoopy

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Re: Shock ruling - Pringles are crisps
« Reply #6 on: May 20, 2009, 05:31:00 PM »
My customers were heavy into roasted nuts for some reason ~ the coated spicey sort  sick2:
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Offline Nick

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Re: Shock ruling - Pringles are crisps
« Reply #7 on: May 20, 2009, 05:33:09 PM »
We have pickled egg fanatics round here  noooo:   sick2:
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Offline tel

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Re: Shock ruling - Pringles are crisps
« Reply #8 on: May 20, 2009, 05:41:58 PM »
We have pickled egg fanatics round here  noooo:   sick2:

Do they have competitions?

They are great fun, to watch that is.

     RTFM

Offline Nick

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Re: Shock ruling - Pringles are crisps
« Reply #9 on: May 20, 2009, 05:43:43 PM »
Mercifully not
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Offline The Moan Ranger

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Re: Shock ruling - Pringles are crisps
« Reply #10 on: May 20, 2009, 08:14:34 PM »
I find them very boring.

If you saw how many scratchings were sold in our locals you would be amazed.

TMR will confirm this.

Indeed - a whole card consumed whilst I was there. 75p for a 25g pack, disgraceful but very profitable, I'm sure. I bought a packet from a nearby shop - 69p for 45g and they were proper tooth breakers. I may buy a load and flog them in the pub "on the quiet"...

Offline Barman

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Re: Shock ruling - Pringles are crisps
« Reply #11 on: May 20, 2009, 09:14:22 PM »
I find them very boring.

If you saw how many scratchings were sold in our locals you would be amazed.

TMR will confirm this.

Indeed - a whole card consumed whilst I was there. 75p for a 25g pack, disgraceful but very profitable, I'm sure. I bought a packet from a nearby shop - 69p for 45g and they were proper tooth breakers. I may buy a load and flog them in the pub "on the quiet"...
I could bring you in some baccy when I come too...  whistle:
Pro Skub  Thumbs:

Offline The Moan Ranger

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Re: Shock ruling - Pringles are crisps
« Reply #12 on: May 20, 2009, 09:20:15 PM »
I find them very boring.

If you saw how many scratchings were sold in our locals you would be amazed.

TMR will confirm this.

Indeed - a whole card consumed whilst I was there. 75p for a 25g pack, disgraceful but very profitable, I'm sure. I bought a packet from a nearby shop - 69p for 45g and they were proper tooth breakers. I may buy a load and flog them in the pub "on the quiet"...
I could bring you in some baccy when I come too...  whistle:

I've stopped smoking  redface:

Offline Barman

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Re: Shock ruling - Pringles are crisps
« Reply #13 on: May 20, 2009, 09:22:42 PM »
I find them very boring.

If you saw how many scratchings were sold in our locals you would be amazed.

TMR will confirm this.

Indeed - a whole card consumed whilst I was there. 75p for a 25g pack, disgraceful but very profitable, I'm sure. I bought a packet from a nearby shop - 69p for 45g and they were proper tooth breakers. I may buy a load and flog them in the pub "on the quiet"...
I could bring you in some baccy when I come too...  whistle:

I've stopped smoking  redface:
::) To sell alongside the counterfeit scratchings like...  whistle:
Pro Skub  Thumbs:

Offline The Moan Ranger

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Re: Shock ruling - Pringles are crisps
« Reply #14 on: May 21, 2009, 08:00:56 AM »
I find them very boring.

If you saw how many scratchings were sold in our locals you would be amazed.

TMR will confirm this.

Indeed - a whole card consumed whilst I was there. 75p for a 25g pack, disgraceful but very profitable, I'm sure. I bought a packet from a nearby shop - 69p for 45g and they were proper tooth breakers. I may buy a load and flog them in the pub "on the quiet"...
I could bring you in some baccy when I come too...  whistle:

I've stopped smoking  redface:
::) To sell alongside the counterfeit scratchings like...  whistle:

Oh, erm...I see  redface: