Sports drinks
In GlaxoSmithKline Services Unlimited v HMRC (TC00688 – 1 October) a company (G) manufactured a drink which it called ‘Lucozade Sport’. It contained carbohydrates and electrolytes and was marketed for sale to people participating in high-intensity sport and exercise. HMRC issued a ruling that G was required to account for VAT on its sales of the product.
G appealed contending that even though the product was intended to be consumed as a drink it should be treated as food rather than as a beverage and qualified for zero-rating.
The tribunal rejected this contention and dismissed the appeal holding that the product was within the definition of a beverage and was therefore excluded from zero-rating. The tribunal specifically distinguished the decision in SIS (Science in Sport) Ltd (No 1) (VTD 16555) observing that in that case the tribunal found that...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Sports drinks
In GlaxoSmithKline Services Unlimited v HMRC (TC00688 – 1 October) a company (G) manufactured a drink which it called ‘Lucozade Sport’. It contained carbohydrates and electrolytes and was marketed for sale to people participating in high-intensity sport and exercise. HMRC issued a ruling that G was required to account for VAT on its sales of the product.
G appealed contending that even though the product was intended to be consumed as a drink it should be treated as food rather than as a beverage and qualified for zero-rating.
The tribunal rejected this contention and dismissed the appeal holding that the product was within the definition of a beverage and was therefore excluded from zero-rating. The tribunal specifically distinguished the decision in SIS (Science in Sport) Ltd (No 1) (VTD 16555) observing that in that case the tribunal found that...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes: