In Walkers Snack Foods Limited v HMRC [2025] UKUT00155, the Upper Tribunal (UT) found that the First Tier Tribunal (FTT) had not erred in law when it found Walkers ‘Sensations Poppadoms’ were standard-rated for VAT. They were made from potato and potato starch and were similar to potato crisps.
- In June 2021, HMRC issued a decision that ‘Sensations Poppadoms’, produced by Walkers Snack Foods Limited (Walkers) in two flavours, were standard-rated for VAT purposes.
- Note 5 of Group 1, Schedule 8 VATA 1994 provides that VAT standard rating applies to "...potato crisps, potato sticks, potato puffs, and similar products made from the potato, or from potato flour, or from potato starch...”
- Walkers and HMRC agreed that the products were not 'potato crisps, potato sticks or potato puffs', but HMRC argued that they were ‘similar products’ made from ‘the potato, or from potato flour, or from potato starch’.
- Walkers Appealed to the First Tier Tribunal (FTT), which Found that the product was standard rated because they were made from potato and potato starch, and were similar to potato crisps.
- Walkers appealed to the Upper Tribunal (UT).
The UT found that:
- The fact that a product is called a ‘poppadom’ does not, in principle, prevent it from also being similar to a potato crisp.
- The fact that Walkers Sensations Poppadoms were similar in several ways to poppadoms did not mean they could not also be similar to potato crisps.
- Walkers Sensations Poppadoms had unique flavours, but this did not distinguish them from potato crisps because the available range of potato crisp flavours was also very diverse.
- The FTT had not erred in its approach.
The appeal was dismissed.
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