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Morrisons must pay £17M in VAT after UK court ruled its hot rotisserie chickens aren’t exempt from tax.
Morrisons must pay £17 million in VAT after a UK High Court ruled its rotisserie chickens are taxable at 20% because they remain hot when sold, despite being eaten cold by most customers.
The court found the chickens stayed above ambient temperature for up to two hours due to heat-retaining packaging, disqualifying them from the "incidentally hot" exemption.
HMRC had no clear guidance from 2012 to 2014, but the supermarket failed to disclose key packaging details.
The decision affects other major retailers selling similar items.
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Morrisons debe pagar 17 millones de libras esterlinas en IVA después de que un tribunal del Reino Unido dictaminara que sus pollos de asado caliente no están exentos de impuestos.