- The CJEU ruled that foodstuffs with the same main ingredient and meeting the same consumer need can be subject to different reduced VAT rates.
- The case involved a dispute between a cafe owner and the tax authority regarding the VAT rate for a chocolate drink.
- The tax authority considered the drink to be a supply of goods with additional services, thus eligible for a reduced VAT rate.
- The entrepreneur challenged this decision, leading to a referral to the CJEU. The CJEU stated that foodstuffs with a common main ingredient can have different VAT rates if they have significant differences or if those differences influence consumer choice.
- The case will return to the lower court to determine if the drinks have similar characteristics and meet the same needs of consumers, as well as if the differences between them influence consumer choice.
- The judgment emphasized that meeting the third criterion is sufficient to consider the goods or services as not similar and subject to different VAT rates without violating tax neutrality.
- It is expected that the court will find differences between the drinks, resulting in a reduced VAT rate of 8% for the disputed drink.
Source MDDP
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)
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
