By now, you may have spotted the viral strawberry and crème sandwich from M&S doing the rounds on social media or in-store. Inspired by the popular Japanese ‘sando’, it certainly caught people’s attention, and now, it’s catching the eye of VAT professionals too.
So, what’s all the fuss about? Isn’t it just a sandwich?
Well, not quite.
While your standard sandwich is zero-rated for VAT, it’s a little more complicated when sweetened ingredients are included. With its sweet bread and strawberry and crème filling, this has sparked a debate around whether it should be classified as confectionery, and that means a 20% VAT rate could apply.
It’s not the first time that VAT has been a conversation when sweet snacks are involved, you may remember the Jaffa cake ruling or the most recent ongoing debate over “mega marshmallows”, both of which raised a question on how sweet, handheld foods should be taxed.
Read our blog post on the marshmallow debate here: What makes a marshmallow worth £500k in VAT? – Whyfield
So far, M&S haven’t said publicly whether they’re paying the 20% VAT, but with the product gaining more popularity and causing more professional debate, this could lead to further investigation.
Just like when we shared when marshmallows made the headlines, it might seem odd that something so simple can trigger so much tax talk, but tax law is rarely straightforward. Whether it’s VAT on snacks or something a bit bigger like data compliance, running a business means a lot of legal, and if you ever are unsure about something that applies to you, just ask, we are here to help!
Contact us on 01872 267 267 or email us at contact@whyfield.co.uk
Head over to our TikTok page where members of the team try the viral sandwich to see what the hype is about! Whyfield (@whyfield) | TikTok