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Marshmallows are ingredients, not sweets, judge rules in VAT row

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Monday May 6 2024

Roasting marshmallows over an open fire is such a part of American culture that even the United States Forest Service provides advice on technique.

In the UK, they're a little less ingrained in everyday life, which is perhaps why the taxman became confused over whether marshmallow importers should have coughed up nearly £500,000 in VAT.

Specialist judges have now thankfully resolved the point, ruling that marshmallows are not sweets, which are taxable, but rather ingredients for cooking.

At the centre of the legal row was Innovative Bites, a company that imports American "sweets and treats" including Baking Buddy Mega Marshmallows. Based in Leicestershire, the company is part of the World of Sweets group, which also owns Bobby's, a line of bagged sweets, and Bonds of

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