Ingredients to be mixed with foods and beverages for human consumption, or that can be used in the preparation of such foods and beverages, are zero-rated, even though a particular product may also have non-food or non-beverage uses. In such cases, the packaging is important in determining the tax status of the product in question.
Where the product is provided for a non-food use in the same packaging or form as it is for use in foods or beverages, the sale is zero-rated. Where it is packaged and promoted for non-food use only, the sale is taxable. Products such as carbon dioxide, ethyl alcohol and other alcohols are always taxable, regardless of their use.