The case revolved around the VAT rate on rotisserie chickens, sold in-store as cool-down birds, but not kept hot, by the supermarket giant were in fact ‘hot food’ under Note 3B, Group 1, Schedule 8, Value Added Tax Act 1994.

The First Tier Tribunal (FTT) ruled against WM Morrisons Supermarkets Limited in the dispute involving an estimated £17m in VAT.

Morrisons appealed against a number of assessments for VAT issued on 14 September 2021 and 28 October 2021 as a result of HMRC’s decision that the sale of whole cool-down rotisserie chickens (CDRCs) in the quarterly VAT periods 01/17 to 07/20 was liable to VAT at the standard rate.  The total amount of VAT at stake was £17,034,932.

At the tribunal Morrisons posited two grounds for appeal, firstly the liability ground, arguing that the supply of CDRCs is zero-rated under section 30 and Item 1, Group 1 of Schedule 8 to Value Added Tax Act (VATA) as ‘food of a kind used for human consumption’ and is not excluded from zero-rating as a ‘supply in the course of catering’.

Secon