This was a consolidated appeal comprising appeals made by the appellant against two decisions of HMRC; the first was a decision to refuse the appellants’ application to treat its supplies of bicarbonate of soda as zero rated for VAT, and the second an assessment for unpaid VAT in the amount of £291,526.00 plus interest.
Both appeals raise the same issue: whether, as the appellant contended, its supplies of bicarbonate of soda were ‘food of a kind used for human consumption’ and so zero rated, or whether, as HMRC contended, those supplies attracted VAT at the standard rate.
The appellant acknowledged that bicarbonate of soda can have other uses, however, it is necessary to look at the supplies actually made. They were clearly intended for use in the production of food. Bicarbonate of soda is an essential ingredient in many breads and cakes. It provides the texture which is essential to the food being
