Law Weblog

Marks and Spencer plc v Revenue and Customs Commissioners [2005] HL

Monday 1 August 2005 at 9:17 pm | In News | Post Comment

[EU Law – article 234 reference – from the Lords]
D, Marks and Spencer claim to have overpaid VAT on tea cakes possibly amounting to more than £3m. This case has already been to the ECJ on one occasion during its 10 year action.

Held: Food is in general zero-rated, but, explained Lord Hoffman, there are exceptions. One exception is confectionery. But there is an exception to that exception: cakes or biscuits are in general also zero-rated. There is however an exception to that exception to the exception, namely biscuits wholly or partly covered with chocolate. They are standard-rated. Art 28 of the Sixth Directive being relevant to the directly enforceable right of the taxpayer.

Matter referred to ECJ
Whole case here