Walkers will have to pay VAT on its Sensations mini poppadoms after a judge ruled that they are crisps in all but name.
Currently, certain foods such as crisps, ice cream, chocolate-covered biscuits and cereal bars, are subject to paying 20% VAT, however traditional poppadoms are zero-rated as they are categorised as a restaurant food or require more preparation than a standard packaged snack.
However, the food manufacturer said that the sales tax should not apply and that the products should not be classed as crisps as they are not made from potato and are designed to be dipped in sauces or with a curry, so therefore do require preperation before consumption , The Guardian reported.
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
However, a tax tribunal said the products were crisps in all but name due to 40% of its ingredients being “potato-derived,” such as potato granules and potato starch.
It added that this was considered “more than enough potato content for it to be reasonable to conclude” that the products would be subject to the levy.
Tribunal judges Anne Fairpo and Sonia Gable said: “Nominative determinism is not a characteristic of snack foods: calling a snack food Hula Hoops does not mean that one could twirl that product around one’s midriff, nor is Monster Munch generally reserved as a food for monsters.”
They added: “They are packaged and sold in a manner similar to potato crisps. Removing them from their packaging, we consider that their appearance and texture is similar to potato crisps.”
Grocery Gazette has approached Walkers for comment.
