- The Amsterdam Court of Appeal ruled that the reduced VAT rate does not apply to the supply of magic truffles.
- The composition and purpose for which the substances are taken are both important factors. Despite containing psychoactive substances, magic truffles are not covered by the Opium Act and can be grown and traded freely.
- The court determined that the purpose of consumption is not for useful or necessary foodstuffs, therefore the reduced VAT rate does not apply.
- The comparison to culinary truffles also does not support the argument for a reduced rate.
Source Taxlive
