Question: are jaffa cakes zero rated?
Answer: But cakes, on the other hand, have been regarded as a staple food — so were zero-rated for the purposes of VAT. Customs and Excise decided to rule Jaffa Cakes to be biscuits, partly covered in chocolate, and therefore standard-rate. ... Now the £1.19billion Jaffa Cakes made every year are free of the consumer tax.