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Random VAT Facts 1. The interpretation of tax law on food has lead to some very high profile court cases including the famous 'pastygate' affair and also the Jaffa Cakes brand taking matters to a tribunal to argue that they should be classified as a 'chocolate covered cake' (0% VAT) as opposed to a 'chocolate covered buscuit' (20% VAT)2. Donations to charity, MOT testing and National Insurance contributions are all outside the scope of VAT.3. VAT is the government's third largest source of revenue after income tax and national insurance.