Comments on ECJ C-146/22: Hot chocolate in restaurants may be subject to 8% VAT

• Polish regulations regarding the taxation of milk-based beverages in restaurants and stores are in line with EU law, according to a ruling by the Court of Justice of the European Union (TSUE).
• The ruling states that a customer who buys a hot milk drink in a café is purchasing a service related to catering, which is subject to an 8% VAT rate. On the other hand, a customer who buys a similar drink ready to consume in a store is not receiving any additional services and is buying a food product, which is subject to a 5% VAT rate.
• This ruling has implications for all EU businesses, as VAT regulations are standardized across the European Union.
• This is not the first ECJ ruling regarding VAT settlements in Polish gastronomy. In a previous ruling, the court stated that the correct VAT rate depends on whether additional services are provided with the food.
• The ruling may pose financial challenges for Polish restaurants, as their financial burden has increased with the temporary 0% VAT rate on food products.

Source: podatki.gazetaprawna.pl

See also

• • C-146/22 (Dyrektor Krajowej Informacji Skarbowej) – Judgment – Different VAT rates for goods are sold at retail or prepared and supplied hot for immediate consumption
  • Roadtrip through ECJ cases: Focus on ”VAT rates” (Art. 96-99)

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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.