Summary
Morrisons, a UK supermarket chain, must pay £17 million in taxes after a legal ruling decided it should charge VAT on its rotisserie chickens. The court found that the chickens, sold hot, did not qualify for a tax exemption despite Morrisons' claims that most customers ate them cold.
Key Facts
- Morrisons faces a £17 million tax bill related to VAT on rotisserie chickens.
- A legal tribunal ruled that the chickens should have a 20% VAT, similar to other hot foods.
- Morrisons argued that most people eat the chickens cold and claimed they should be tax-exempt.
- The ruling stated Morrisons did not disclose important details about the chicken packaging.
- The tax matter stems from a law introduced in 2012, known for affecting baked goods.
- The tribunal judge highlighted the packaging's heat retention features as a key issue.
- The chickens were removed from sale while still hot, making them ineligible for VAT exemption.
