Pringles exempt from VAT because they are 'not crisps' rules High Court

They may be found next to each other in the supermarket  -  but Pringles are not potato crisps in the eyes of the law, a judge ruled yesterday.

The decision means the snack will remain free of VAT, which will save manufacturers Procter & Gamble millions.

During the hearing at the High Court in London Mr Justice Warren was asked to consider the ' potatoness' of a Pringle.

He was told by P&G's barrister that Pringles, which have a distinctive patented shape, were more like biscuits or cakes than crisps.

Under UK law, most foodstuffs are exempt from VAT.

But the taxman had claimed that Pringles fell within one of the exceptions for 'potato crisps, potato sticks, potato puffs and similar products made from the potato, or from potato flour, or from potato starch'.

That would have meant that the moreish snack  -  sold in tubes bearing the face of their mascot Julius Pringles  -  would have been subject to VAT at 17.5 per cent. Pringles sales are worth more than£100million a year in Britain.

Richard Cordara QC, appearing for P&G, told the High Court: 'The appearance and taste of a Pringle is not that of a potato crisp.

'It has none of the irregularity and variety of shape that it always present in crisps. It has a shape not found in nature being designed and manufactured for stacking.'

The colouring and texture were also different, which, Mr Cordara said, 'betrays its doughy origins'.

He added: 'A Pringle does not taste like a crisp, or otherwise behave like one. It is totally different.

'A Pringle is designed to melt down on the tongue. It is not designed to present the kind of jagged sensations associated with a crisp or similar product.'

Crisps are made from slicing and frying a slice of potato, he said.

Pringles, by contrast, are made from dough like a cake or biscuit, but with some potato content.

He made his claims even though the brand was called Pringle's Newfangled Potato Chips when it was launched in the U.S. 40 years ago.

P&G's U.S. website refers to them as crisps. In May last year, a VAT and Duties Tribunal ruled that Pringles fell within exception 5 of the VAT Act 1994 and so were subject to VAT.

Yesterday, Mr Justice Warren allowed P&G's appeal against that decision, ruling that Pringles were not 'made from the potato' in the eyes of the law.

He said that to come within the exception 'the product must contain nothing, or substantially nothing, other than potato'.

The judge rejected an alternative approach put forward by lawyers, which would have required him to decide the 'potatoness' of a Pringle.

Pringles are made from potato flour, corn flour, wheat starch and rice flour together with fat and emulsifier, salt and seasoning, with a potato content of around 42 per cent.

As a result, he concluded: 'This appeal is allowed because Pringles are not, on the facts found, products "made from the potato, or from potato flour, or from potato starch".'

Good news for the many fans of Pringles. Still, it's probably best not to dunk them in your tea.