The Scottish Tax Tribunal has ruled that the popular coconut-covered
“snowball” snacks are VAT-free cakes, not standard-rated sweets. With food
zero-rated but confectionery at 20% the VAT can make a big difference.
Looking at all the facts The Tribunal decided that the snowballs had more
of the characteristics of a cake, such at normally being eaten at a table
or using crockery.
Tax Barrister, Accountant