- The Court of The Hague has ruled that Sclerotica, also known as ‘Magic Mushrooms’, are not considered foodstuffs as they are sold and used solely for their hallucinogenic effect and do not provide significant nutrients.
- An interested party, X, sells Sclerotica and pays 21% VAT on turnover, but the reduced VAT rate for foodstuffs does not apply as food is defined as products consumed for nutrients, energy supply, and regulation of the human organism.
- Although Sclerotica contains some necessary nutrients, they are consumed in small quantities due to their hallucinatory effect.
- The appeal to the principle of legal certainty is rejected, and previous rulings refer to a different table entry.
- The interpretation of the term ‘foodstuffs for human consumption’ remains uncertain.
Source Taxlive
Latest Posts in "Netherlands"
- Late objection to additional VAT assessment remains inadmissible
- Municipal Entrepreneurs’ Fund Not Eligible for VAT Deduction Due to Non-Compliance with Approval Conditions
- Knowledge group position: VAT reverse charge mechanism applicable to contractor activities
- When Is a Theatre Drink a Separate VAT Supply? Lessons from the Dutch Supreme Court
- Fraudulent Employee Purchases Lead to VAT Liability Without Deduction for Company
