Tesco is marking 30 years of Clubcard with the launch of a limited-edition Birthday Cake Sandwich, a product causing stir on social media over a VAT challenge.

Tesco’s latest addition to its Meal Deal Range has sparked interest online

Available from 5 August in over 1,000 stores for four weeks as part of the supermarket’s Meal Deal range, the sandwich contains strawberry jam and cream cheese with brioche-style bread, completed with rainbow sprinkles.

It is understood that the product, which took nine months in development by the grocer’s product innovation team, comes as a nod to classic birthday cake and Victoria sponge flavours.

Brand manager Violaine Barthe: “With 3.1 million sandwiches sold in Tesco each year, sandwiches make up a big proportion of Clubcard purchases, and so there was only one way to celebrate Clubcard turning 30.

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“The Birthday Cake sandwich is a celebration not to be missed and we can’t wait to hear the nation’s feedback.”

The launch follows other novelty sandwich creations by UK grocers, including Tesco’s own 2011 Strawberries & Cream sandwich and M&S’s recent version, which drew attention from HMRC over VAT classification.

If deemed a confectionery item rather than a standard sandwich, the new birthday sandwich could be hit with a 20% VAT rate, potentially pushing the price up from £3 to £3.60 or squeezing the supermarket giant’s margins.

Bionic small business lead Laura Court-Jones said: “If the VAT classification is unclear, HMRC can challenge businesses, leading to additional costs and uncertainty, as seen in the M&S case.

“Trends like this are worth watching closely, the surge in demand offers opportunities, but also potential tax pitfalls.”

Despite the uncertainty, the sweet sandwich is currently priced at £3.60 as part of the Meal Deal for Clubcard holders (£4 for non-members), making it an accessible lunchtime treat while it lasts.

TikTok users have already propelled the sarnie into viral territory, with videos featuring the pastel creation racking up over a million views.

In June, Tesco opened its own pop-up 90’s nightclub, dubbed Club Card, to celebrate the 30^th birthday of its loyalty scheme.