What Product Category are FlapJacks?
Started by beantester, Jan 12 2011 08:48 AM
We currently have a debate at the moment, as to what product catagory a FlapJack is? we have varying opinions as if it is classed as a cake, biscuit or cereal bar.
What are your thoughts/experiences? as it can effect if we sell it by item or weight.
Thanks
What are your thoughts/experiences? as it can effect if we sell it by item or weight.
Thanks
When is Reworking of product acceptable
New Product Development
New Product Development
Fresh Product Supplier
RASFF 2024 Overview: Top Product Groups and Hazards
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Tricky and I suspect unless there is case law, you may have to fight this battle and it will also affect VAT.
For info, I'm not sure if you're aware of the Jafffa Cake case? As far as I remember (and I will search on this if I have time before my son wakes up) McVities took legal action to have a Jaffa Cake declared a cake not a biscuit. Their argument (and they won) is that a stale jaffa cake goes hard. Stale cake goes hard whereas stale biscuits go soft. I believe (but I'm no expert on this) that cakes are zero rated for VAT whereas biscuits aren't.
So my gut feel before that case would have been "of course they're a biscuit" but I was proved wrong by the lawyers. My gut feel with flapjacks is probably cake but I could be wrong too.
For info, I'm not sure if you're aware of the Jafffa Cake case? As far as I remember (and I will search on this if I have time before my son wakes up) McVities took legal action to have a Jaffa Cake declared a cake not a biscuit. Their argument (and they won) is that a stale jaffa cake goes hard. Stale cake goes hard whereas stale biscuits go soft. I believe (but I'm no expert on this) that cakes are zero rated for VAT whereas biscuits aren't.
So my gut feel before that case would have been "of course they're a biscuit" but I was proved wrong by the lawyers. My gut feel with flapjacks is probably cake but I could be wrong too.
Ah, sorry, biscuits are only vattable if they are chocolate covered.
http://www.jaffa-cak...s-biscuits-name
Sorry gotta go, man waking up...
http://www.jaffa-cak...s-biscuits-name
Sorry gotta go, man waking up...
Have been doing some more research, a flapjack would go hard if left out, so that would put it in the cake category, however I found a legal case that Asda lost against the tax man, as they were not paying VAT on flapjacks, and tax judges ruled it was more similar to a cereal bar and therefore taxable!
We are not looking at this for tax purposes but if we can label the product by item or have to include weight declaration.
We are not looking at this for tax purposes but if we can label the product by item or have to include weight declaration.
So I guess as there is case law existing, it would be classed as a cereal bar. Interesting. Are flapjacks and cereal bars manufactured in a similar way?
I'd take it to your TSO and discuss it as you're main concern is around weight legislation. That way even if you come to a decision together, they are then not likely to challenge that decision in the courts as you've been completely open with them.
I'd take it to your TSO and discuss it as you're main concern is around weight legislation. That way even if you come to a decision together, they are then not likely to challenge that decision in the courts as you've been completely open with them.
1 Thank
Hope this helps:
http://oxforddiction...#m_en_gb0301100
flapjack(flap|jack)Pronunciation:/ˈflapdʒak/
noun
Origin:
early 17th century (in flapjack (sense 2) ): from flap (in the dialect sense ‘toss a pancake’) + jack; sense 1 dates from the 1930s and is probably a regional coinage
http://oxforddiction...#m_en_gb0301100
flapjack(flap|jack)Pronunciation:/ˈflapdʒak/
noun
- 1 British a sweet dense cake made from oats, golden syrup, and melted butter, served in rectangles.
- 2 North American a pancake.
Origin:
early 17th century (in flapjack (sense 2) ): from flap (in the dialect sense ‘toss a pancake’) + jack; sense 1 dates from the 1930s and is probably a regional coinage
2 Thanks
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