UK food firm Innovative Bites Ltd wins tax case, classifying marshmallows as non-sweet, VAT exempt.

A UK food firm won a tax case, with a judge ruling that marshmallows are not classified as sweets and thus exempt from VAT. Innovative Bites Ltd, which imports American treats, secured a £470,000 tax avoidance after arguing that their "Mega Marshmallows" are 'ingredients' for cooking, not confectionery. The Upper Tribunal upheld the ruling, stating that marshmallows are often roasted and sold during barbecue season.