Under UK law, VAT on cakes and biscuits is set at 0%. But if a biscuit is covered partially or wholly in chocolate, it will be taxed at a standard rate - 17.5%. 
McVitie’s Jaffa Cakes went to court to prove how they are a cake and not a biscuit!
What a delicious dilemma to be in! 
See this week’s Crazy Tax Story and read all about it on Bytes.
4 Likes
Hey wow, I was just reading about this yesterday! How crazy is that!
Also, what a world to live in!! 
1 Like
@riya_gupta another reason for it to be a #crazytaxstory 
Wow wow what a delicious story, indeed.
Do let me know the verdict.
Hey @Rashi_Arora
Subscribe to Bytes to know the verdict on that one 
No matter how much you love biscuits or cakes.
Taxes never dessert you.
1 Like