The First Tier Tribunal (FTT) has ruled in HMRC’s favour, declaring that the flapjacks sold by Glanbia Performance Nutrition (UK) Limited do not fall within the definition of cake for the purposes of VAT and were in fact classified as confectionery and are subject to standard rate VAT rather than zero-rated.

This meant that the company was not entitled to credit for input tax on the supply of the products.

Glanbia Performance Nutrition is a manufacturer of nutritional sports and performance protein bars, shakes and powders. Its sales are business to business and it sells its products to companies which sell the products to their customers rebranded as their own products.