The Eye

Think Tax Rules on The US are crazy? Well take a look at this from the UK.

Biscuits, which in the US, we know as cookies…..

A chocolate chip biscuit where the chips are either included in the dough or pressed into the surface before baking are zero-rated for VAT - i.e there is no sales tax on them.

On the other hand, all biscuits wholly or partly coated including those decorated in a pattern with chocolate or some similar product are standard rated for VAT - i.e 17.5% sales tax.

Biscuits where the chocolate or similar product forms a sandwich layer between two biscuit halves and is not continued to the outer surface is zero rated.

However, a similar biscuit covered in chocolate all over attracts standard rating.

The moral of this stupid sorry tale? If you live in, or go to live in the United Kingdom, don’t think about selling biscuits. You’ll probably need a tax manual first.