UK retailer Marks and Spencer has triumphed in its long-running legal battle over whether VAT should be levied on its teacakes.
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M&S has been embroiled with HM Revenue & Customs over the tax status of its teacakes for over a decade.
Under UK tax rules, cakes are categorised as being exempt from VAT, while chocolate-coated biscuits are not, as they are deemed a luxury item.
In 1994, the retailer won approval for its central argument that teacakes were indeed cakes but has been fighting ever since for a full refund.
M&S finally triumphed in its dispute with HM Revenue & Customs on Wednesday (4 February) after the House of Lords backed an EU ruling last year that the retailer is entitled to a full rebate.
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By GlobalDataAn M&S spokesman told just-food that the tax refund stood at GBP3.5m (US$5.2m) and added: “After 13 years of litigation, we’re pleased this matter has finally concluded.”
