Categorization As Cake or Biscuit For VAT
In the United Kingdom, value added tax is payable on chocolate-covered biscuits, but not on chocolate-covered cakes. McVities defended its classification of Jaffa Cakes as cakes at a VAT tribunal in 1991, against the ruling that Jaffa Cakes were biscuits due to their size and shape, and the fact that they were often eaten in place of biscuits. McVities insisted that the product was a cake, and according to rumour produced a giant Jaffa Cake in court to illustrate its point. After assessing the product on eleven criteria, including "texture", "attractiveness to children" and "consistency when stale", the court found in McVities' favour, meaning that VAT is not paid on Jaffa Cakes in the United Kingdom.
Read more about this topic: Jaffa Cakes
Famous quotes containing the words cake and/or biscuit:
“We had hardly got out of the streets of Bangor before I began to be exhilarated by the sight of the wild fir and spruce tops, and those of other primitive evergreens, peering through the mist in the horizon. It was like the sight and odor of cake to a schoolboy.”
—Henry David Thoreau (1817–1862)
““He is so polite!”MYes, he is always prepared with a biscuit for Cerberus and is so timid that he assumes everyone is Cerberus, even you and me—that is his “politeness.””
—Friedrich Nietzsche (1844–1900)