Sunwarrior protein mix wins £800k VAT dispute

A superfood importer has won an £800,000 appeal against HMRC at the First Tier Tribunal as products did not contain enough carbohydrates to be considered a sports drink

Global by Nature (GBN) won the appeal against the tax treatment of its sports drink after the submission of an error correction notice (ECN) by accountants Grant Thornton to HMRC on 16 February 2016. The claim totalled £1,246,566 covering a four-year period from 2016 to 2020.

The appeal related to zero rating of the company’s Sunwarrior products, which were vegan protein powders used for sports recovery.

GBN supplies health food wholesalers and distributors, including Dolphin Fitness Ltd, and also sells to a number of health food stores. Some sales are made directly to consumers via the UK website and the Nutrimarket site, as well as through third parties such as Amazon.

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