Just occassionally the complex world of VAT throw’s up some very bizarre questions! The latest came to our attention in the case of Supreme Petfoods Limited where the conundrem for the Tribunal was whether a ferret was a pet or a working animal.

Not something one ponders everyday, but nonetheless an important question to answer if, as the supplier of their food product “Frankie Ferret” and “Selective Ferret”, you are trying to reclaim the VAT back on these supplies.

The supply of animal feeding stuffs is zero-rated, however pet food is standard rated.  Supreme Pet Foods were of the opinion that their supplies were eligible for zero-rating as their products were mostly sold to wholesalers and they were supported by the opinion of the British Ferret Club who believe the majority of ferrets are kept as working ferrets.

HMRC, however, were of the opinion that the supplies were standard rated pet food and thus it was left to the Tribunal to root out the answer.

Relying on various submissions including the Ferret Census Results of 2009, the Tribunal concluded:

“We accept therefore (and find as a fact) that ferrets can be classified generally as a pet species….

We conclude (and find as fact) that food held out for feeding ferrets generally is pet food, because ferrets generally are pets. The position is, apparently, different for rabbit food because HMRC appears to accept – though we make no finding on the point- that rabbits generally are not pets.”

And they say tax needn’t be taxing!

If you’d like to read the full case or would like any further advice, then don’t hesitate to get in touch!