With only a fortnight to go before VAT is added to ‘sports nutrition products’, retailers and suppliers have blasted the government for its failure to clarify which products will be affected.
The measure, which was announced in the Budget, is due to be implemented on 1 October amid a storm of industry criticism.
Although HMRC sent out a document on 31 August to clarify the situation, Mark Langley, general manager of GSK Maxinutrition, said the rules were confusing.
It remained unclear whether milk-based RTD drinks counted as sports nutrition drinks or milkshakes (which would make them exempt), whether protein-based weight-loss products would be granted an exemption along with other weight-loss products, and whether VAT could be avoided by simply not marketing a bag of whey protein as being sports-related.
Langley also attacked the legislation for lumping sports nutrition with sugary drinks and giving VAT-exempt milk products an unfair price advantage. “The government set out to clear up two anomalies and has created 22 more,” he said.
Holland & Barrett agreed. “Where customers are seeking to start a Health or fitness regime, the government is making products less accessible,” said Lucy Pottinger, H&B’s category manager for sports nutrition.
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