In the Upper Tribunal, Morrisons appealed against a First Tier Tribunal (FTT) decision relating to whether Nakd and Organix snack bars should be classed as zero-rated as confectionery.

The supermarket is trying to reclaim almost £1.1m in VAT on the sale of snacks made by Nakd and Organix between 2014 and 2018.

The Upper Tribunal allowed the supermarket’s appeal and sent it back to the FTT for a final decision on the amount of VAT due.

The key issues in the appeal related to whether certain Organix and Nakd bar products fell within an exception to zero-rating as confectionery under s8 of the Value Added Tax Act (VATA 1994).