Thursday, April 10, 2008

The Important Difference Between Cakes and Biscuits

In the UK, the government is facing a huge bill, because of VAT wrongly imposed on a Marks and Spencer teacake, the European Court of Justice has ruled. The cake has been deemed as a biscuit for the past twenty years, whence VAT has had to be payed. Under UK tax rules, some bakery products are free of VAT, others are not. This is the whole issue. It may seem insignificant, but given the whole amount of VAT wrongly payed to the UK government, it means a lot, £3.5 million (almost 42 million Swedish crowns). Since this is in the UK, it does not mean anything for my cake purchases, but I am happy that there might be dogs in the UK who may get cheaper cakes now. I hope something like this could happen to dog biscuits in Sweden.

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