Tax & Legal

The ECJ has held that the sale of prepared hot and cold snacks from stalls and stands for immediate consumption is taxable at the reduced rate as the sale of foodstuffs. Party service deliveries, by contrast, are services taxable at the standard rate.

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.

In a most recent judgment, the Supreme Tax Court held that a method for allocating a standardized total price for a certain product that results in a proportionate sales price for a combination of goods (here: „economical menu” or “best value meal“ in the „system gastronomy“) that is higher than the individual sales price is not appropriate.

2023年6月19日、欧州委員会は、欧州連合（EU）における源泉徴収手続きを投資家、金融仲介業者、加盟国の税務当局にとってより効率的で確実なものとすることにより、単一市場への投資を促進することを目的とした「超過源泉税のより迅速かつ確実な救済（FASTER）指令」の草案を公表した。

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.

The ECJ has ruled in two cases that the reduced-rate VAT on the sale of horses must be restricted to animals intended for slaughter for food or fodder.

The Supreme Tax Court has held that a mobile stand selling sausages and chips to passers by sells food if it does not provide seating. If it does, the food sales are a restaurant service, even if the seating is primitive, uncomfortable and inadequate.

On 14 May 2024 the Council reached an agreement (general approach) on safer and faster procedures to obtain double taxation relief, which will help boost cross-border investment and help fight tax abuse.

An additional estimate by the tax office because of a breach of record-keeping obligations is not possible if the taxpayer (a sole trader in the food and non-food sector) was relying on the simplified record-keeping procedure granted to him by the Federal Ministry of Finance. The main issue in the case of dispute was whether the ministerial circular to that effect covers not only food but also non-food items.

The ECJ has held that the reduced rate of VAT on the sale of horses may only be applied to the sales of those intended for human consumption or for feeding to other animals.

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 granted transitional relief to September 30, 2013 on its March decree on the distinction between the sale of food and restaurant services.

The Supreme Tax Court has followed the ECJ in holding that snack sales in cinemas are sales of food; seating and other service elements being provided to the cinema patrons as such, rather than to snack buyers specifically.

On 1 July 2022 the European Commission adopted a resolution enabling Member States to temporarily waive customs duties and VAT on the importation from third countries of food, blankets, tents, electric generators and other life-saving equipment destined for Ukrainians affected by the war.

The Northrhine-Westphalia tax authorities are taking a further step towards digital administration. From May 2025, an AI module will be used for the first time in four pilot tax offices in the state to support the tax assessment procedure. The objective: tax returns are to be processed more efficiently, faster and more accurately - to the benefit of both citizens and employees in the tax administrations.

The Council today agreed on a partial negotiating mandate on a fundamental reform of the EU customs framework. The overhaul will give customs authorities across the EU a more modern toolbox to deal with trends such as huge increases in trade volumes, especially in e-commerce, a fast-growing number of EU standards that must be checked at the border and shifting geopolitical realities and crises.

Services in connection with hotel accommodation are subject to the reduced VAT rate, this also applies to ancillary services – inasmuch as they immediately contribute to the letting of rooms.

In the course of the Tax Amendment Act 2025 a reduction of VAT for restaurant and catering services, with the exception of the sale of beverages, to seven per cent was introduced from 1 January 2026 (Section 12 (2) No. 15 of the Value Added Tax Act). The Federal Ministry of Finance (MoF) has recently issued a brief decree as to specific aspects of the new rule.

In a decision published today the Third Chamber of the First Senate of the Federal Constitutional Court (“FCC”) overturned various tax court decisions concerning the obligation to use the special electronic tax advisor mailbox (known as “beSt”).

On 19 June 2023 the European Commission proposed new rules to make withholding tax procedures in the EU more efficient and secure for investors, financial intermediaries (e.g., banks) and Member State tax administrations. This initiative is aimed to promote fairer taxation, fight tax fraud, and support cross-border investment throughout the EU.