Bakery wins food tax bid; TRIBUNAL: VAT argument melts under appeal ruling.Byline: By Will Oliphant FIRMS could be in for a rebate rebate, partial refund of the total price paid for goods or services. In the United States, rebates were historically given by railroads to favored shippers as a return on transportation charges. from the tax man after a Birmingham accountancy firm won a long-running legal battle over VAT VAT See: Value-added tax VAT See value-added tax (VAT). on food. Edgbaston-based HW Chartered Accountants char·tered accountant n. Chiefly British Abbr. CA A member of one of the institutes of accountants granted a royal charter. represented Leeds bakery Ainsleys in their argument over whether their ciabatta ciabatta Noun a type of bread made with olive oil [Italian: slipper] melts should be the subject of the tax. Under tax rules, food that is intended to be consumed while hot is subject to VAT - but if that is not the intention of the retailer, zero rating can apply. The company argued that it sold its product frozen but it was then warmed up in stores to create optimum freshness and a pleasing aroma. They said it was then out of their control whether customers ate the product warm or cold. An initial claim for over-paid VAT was submitted in 2004 - but HM Revenues and Customs refused to repay. An appeal was made to the VAT Tribunal A general term for a court, or the seat of a judge. In Roman Law, the term applied to an elevated seat occupied by the chief judicial magistrate when he heard causes. tribunal n. and in August 2006 the tribunal decided in the bakery's favour. Terri Halstead, Tax Partner at HW Chartered Accountants, said any business selling similar products should consider submitting a claim to the VAT department for a refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies . "This is not just applied to ciabatta melts but a similar approach might be taken in respect of other savoury products," she said. "This case demonstrates that businesses should never accept Customs' rulings at face value. However, professional help is advised as a number of claims have failed." |
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