Innate-Essence Limited, which sells the shots under The Turmeric Co brand, appealed to the tribunal against an HMRC decision which rejected VAT adjustments totalling £80,730.52.

The appellant, The Turmeric Co, argued that its supplies of turmeric shots should be classed as food under Group 1 Schedule 8 of the Value Added Tax Act (VATA) 1994 and therefore subject to the zero rates of VAT.

Group 1 Sch 8 VATA determines that food is the supply of anything made for human consumption, except ‘a supply in the course of catering, and any of the excepted items’.

However, VAT is charged on drinks liable for excise duty, such as spirits, beer and wine. This includes fruit juices, bottled water, and other products falling under ‘preparation of beverages’.

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