The humble little tea cake is officially a CAKE, ruled the European Court of Justice - and that means that VAT is not chargeable. Customers have been paying VAT on the humble sticky little blighters for 20 years and now that could be paid back - to Marks and Spencer, a nice little £3.5m despite the fact that it's US the customer who have been paying the VAT!!

Nice to know the European Court of Justice are being kept busy with the important stuff!

Factual moment:
Under UK tax rules, most traditional bakery products such as bread, cakes, flapjacks and Jaffa Cakes are free of VAT, but the tax is payable on cereal bars, shortbread and partly-coated or wholly-coated biscuits.

full story here
http://news.bbc.co.uk/1/hi/world/europe/7340101.stm

James.

I thought that there was a limit for 6 years? or is it 3, to claim back incorrectly paid VAT?

Karen

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