Innate-Essence Ltd (t/a The Turmeric Co) v HMRC

In Innate-Essence Ltd (t/a The Turmeric Co) v HMRC [2023] UKFTT 371 (TC) (17 April 2023) the FTT decided that a turmeric shot sold by the company qualified for the zero rate of VAT as a food product and was not a beverage.  

The Turmeric Co manufactures shots and sells them via its website. The FTT noted from the website that shots are sold in 60ml bottles costing £1.99 each if a subscription is taken for 28 shots per month. The FTT found that the purpose of a shot is entirely functional: to maximise daily ingestion of curcumin.  

VATA 1994 Sch 8 Group 1 is clear that if a product other than one of the specifically excepted items such as milk is a beverage it is subject to VAT at the standard rate. The legislation provides examples of beverages but it does not provide an exhaustive definition...