Pringles Liable To UK VAT, Court Rules

HM Revenue and Customs has won a legal battle with Proctor and Gamble over the liability for value-added tax (VAT) purposes of its Pringles potato chips. The Court of Appeal has ruled that Pringles are, in fact, a potato-based snack despite the fact that they are only 42% potato, and are therefore liable for VAT at the standard rate, currently 15%. Procter and Gamble had attempted to prove in a long-standing battle that their crisps should be allowed VAT-exemption — due to the fact that they are really more dough than potato. The argument was based around the fact that Pringles had been placed within the category of potato crisps, potato sticks, potato puffs and similar products made from the potato, or from potato flour, or from potato starch, by a VAT and Duties Tribunal in 2007