Toasted bagels do not constitute a hot takeaway meal and therefore are not subject to VAT, a tribunal has ruled.
The Great American Bagel Factory, which has 28 bagel outlets, defeated Customs & Excise after an 18-month battle on the basis that the bagels were toasted for a maximum of 15 seconds not to serve them hot but to change their texture.
The victory has been hailed as a ground-breaking ruling for the UK's bagel sellers. Now the company hopes to recoup the cost of bringing the case and VAT already paid, totalling £110,000.
The Great American Bagel Factory, which has 28 bagel outlets, defeated Customs & Excise after an 18-month battle on the basis that the bagels were toasted for a maximum of 15 seconds not to serve them hot but to change their texture.
The victory has been hailed as a ground-breaking ruling for the UK's bagel sellers. Now the company hopes to recoup the cost of bringing the case and VAT already paid, totalling £110,000.
