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This becomes multifaceted in the UK where due to derogation, there are numerous zero-rated taxable items as well as those at a standard rate.
The problem lies in the fact it is not always obvious what category an item falls into; per se there is many a difference of opinion between the Customs and Excise (C&E) and the respective business. When this occurs, it is perceptible the dispute will end up in a court of law where a conclusion will be made. An ideal example of such a case is that of Card Protection Plan Ltd (CPP) v Customs and Excise Commissioners (C&E) (1999) STC 270, and one that is a leading case in the VAT categorisation problem of single and multiple supplies...
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