Summary 

This was an appeal regarding whether the supply of a dip pot as part of a KFC takeaway meal deal was a separate zero-rated supply or whether it was part of a single, standard-rated supply of hot food. 

Background 

The appellant had, until 2019, accounted for VAT on the basis that the dip pots formed part of a single standard-rated supply. However, it then changed its view on this and submitted an error correction notice to reclaim the VAT it considered it had wrongly accounted for between October 2015 and September 2018. After some debate, HMRC agreed to repay the VAT. 

The appellant then submitted a further error correction notice to reclaim VAT which it had accounted for on dip pots comprised in takeaway meal deals between October 2018 and September 2019. This claim was reviewed by a different HMRC officer and was refused on the basis that the dip pots formed part of a single