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Pringles: Crisp or Biscuit


jackosotc

Pringle?  

73 members have voted

  1. 1. Pringle?

    • Crisp
      71
    • Biscuit
      2


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Why are biscuits exempt from VAT anyway? They are junk food snacks also...

Not all of them are, only some iirc. Thats why the Revenue wanted to call Jafffa cakes biscuits because they were chcocolate coated they were classsed as luxury biscuits and were taxable, biscuits without chocolate were staple biscuits and exempt but all cakes were exempt - hence the now famous court case where the revenue wasted gawd knows how many thousands of our pounds trying to prove a cake was not a cake

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Why are biscuits exempt from VAT anyway? They are junk food snacks also...

Not all of them are, only some iirc. Thats why the Revenue wanted to call Jafffa cakes biscuits because they were chcocolate coated they were classsed as luxury biscuits and were taxable, biscuits without chocolate were staple biscuits and exempt but all cakes were exempt - hence the now famous court case where the revenue wasted gawd knows how many thousands of our pounds trying to prove a cake was not a cake

Ah I see. Which brings me on to my next point; Why is cake considered a staple? It is junk food as well.

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I can see their point, they aren't crisps in the traditional sense, you don't cut a pringle from a potato, potato is just used in the dough used to make them. In law it's not as simple as if it looks like a crisp it is a crisp, it has to actually be one as well.

People seem to lack reading comprehension as well, they won't be forced to pay millions in back taxes because:

But a spokesperson for Procter & Gamble said the company had been paying VAT on the snack pending the appeal process, and so was not liable for any back taxes.

And others obviously also lack reading comprehension because the revenues point was that a Pringle was a potato snack not a crisp, so I can see their point too, it is a snack food and it is made from potato ;-)

Well, the exemption from being zero rated is for "potato crisps, sticks of puffs and similar products made from potato, potato flour or potato starch when packaged for human consumption without further preparation; "

There's enough ambiguity in there to at least launch a defense that they aren't a similar product, and as they aren't made entirely from potato (or even mostly) that they don't fall into that definition. It's not like all potato snacks have to pay VAT, only those which are crisp like.

My point was that they did the right thing, challenged the classification, but continued to pay VAT just in case. People are too quick to jump to "well it looks like one so it is!" when in reality you need far more than just a visual similarity to something to be it.

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I dont like P&G anyway and have not bought any of their products for years, after discovering that they have a disgusting policy regarding animal testing (although that was about 7 years ago, if they have changed in the meantime I stand to be corrected)

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On further research, this arises from UK usage not having a distinct word for Pringles-esque products.

Note that Frito Lay's competitor to Pringles, Baked Lay's, also refers to itself as "Potato crisps":

BAKED_LAYS_Original_Potato_Crisps_.GIF.gif

baked mashed potato wafers: potato crisps in the USA, ???? in the UK

fried potato wafers: potato chips in the USA, crisps in the UK

fried potato sticks, etc.: french fries in the USA, chips in the UK

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