When using a food-court in a shopping mall the services of a fast-food provider may not be a delivery of food (for which the reduced VAT rate is applicable) but rather a service subject to the standard VAT rate if - as the Supreme Tax Court points out in a most current decision - it is evident from the perspective of an average consumer that the provider of the food has a facility at his disposal on the nearby premises. This, e.g., may be the case if a tray is provided for transporting the purchased food to a consumption facility located in the food-court.
The Supreme Tax Court has followed the ECJ in holding that a party service provides more than the mere supply of hot and cold food and thus performs a service chargeable to standard rate VAT.
The finance ministry has set out the principles to be followed in distinguishing between the sale of foodstuffs and the provision of services when supplying meals in a ready-to-eat condition.
