The World of Sweets, a subsidiary of Innovative Bites Ltd, appealed against an assessment of £472,928 relating to the VAT treatment of its food product ‘Mega Marshmallows’.

HMRC issued an assessment on the basis that the product should be standard rated as 'confectionery' for the periods June 2015 to June 2019.

The appellant argued that the product was intended to be roasted over a campfire or barbecue and then eaten or used for "s’mores", a campfire snack popular in the US.

The marshmallows are larger than the regular size and would not usually be used as a snack, and therefore did not fall within the term confectionery.