Walkers loses second poppadom VAT row

The Sensations poppadom is still a crisp in the eyes of HMRC as Upper Tribunal rules they are subject to the standard rate of VAT after Walkers appeal fails on every ground

Walkers originally lost its case at the First Tier Tribunal (FTT) in January 2024 and has abruptly been knocked back again due to the Walker’s poppadom being 40% made up of potato.

The FTT found the Walkers product, which retails for £2.50 a bag, did not fall within item 1 of Group 1 of Part II of Schedule 8 to the Value Added Tax Act 1994 (VATA) and fell within excepted item 5 Group 1. This includes potato items such as crisps and ‘similar products’.

Both flavours of Walker’s poppadom contained up to 18% potato contents and approximately 40% potato-derived ingredients, leading the FTT to conclude these items were ‘similar products’ to potato items such as crisps and therefore not zero rated.

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