Cake or death? Er, biscuit?

[sylke]

And the British make fun of our legal system... From the Wikipedia entry on Jaffa cake:

"Under UK law, no VAT is charged on biscuits and cakes - they are 'zero rated'. (Note that in British English, a 'biscuit' is roughly equivalent to a US 'cookie' or 'cracker'). Chocolate covered biscuits, however, are classed as luxury items and are subject to VAT at 17.5%. McVitie's classed its Jaffa Cakes as cakes, but in 1991 this was challenged in court. This may have been because their Jaffa Cakes are about the same size and shape as some types of biscuit. The question which had to be answered was what criteria should be used to class something as a cake or biscuit. McVitie's defended the classification of Jaffa Cakes as a cake by producing a giant jaffa cake to illustrate that their jaffa cakes were simply mini cakes. They also argued that the distinction between cakes and biscuits is simply that cakes go hard when stale, whereas biscuits go soft. It was demonstrated that Jaffa Cakes become hard when stale and McVitie's won the case."

Comments

[inkyblue2.livejournal.com]

that was quite possibly my favorite post of the week. <3

[sylke.livejournal.com]

I take that as high praise, thank you! :) So when do we get pictures of the new tat?

[jfrands.livejournal.com]

No different, really than the national legal definition of tomato as a vegetable, or that in Minnesota "groceries" are not taxed but candy and soft drinks are. Thus Snickers candy bars carry the state sales tax, but chocolate covered granola bars don't because they are considered "breakfast food".
For an amusing list see here:

http://www.taxes.state.mn.us/taxes/publications/revenue_notices/content/92-09.shtml

[faeryguinevere.livejournal.com]

chocolate-covered insects
*laughs*

Do you know if there was a change in the law regarding bakery products? I know not too long ago The Wedge starting hanging signs in the bakery about bakery breads now being subject to sales tax, whereas the pre-packaged breads were not. Maybe I am misremembering it or misreading the signs, though.

[jfrands.livejournal.com]

Yes, there is a seperate law for foods made for purchase at the point of sale... so a coffee shop or a popcorn stand has to pay sales tax. But then they decided that a bakery was the same as coffee shop, and bread is taxed, but not when it comes from somewhere else.

[fiannaharpar.livejournal.com]

Jaffa Cakes *are* little cakes....and I love them.

Then again McVitie's makes Hob Nobs, to which I am addicted.

[faeryguinevere.livejournal.com]

Mmm - I would love to have a jaffa cake :)