PwC

Tax & Legal

Tax & Legal

VAT rate for provision of food and beverage services in a shopping center


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. Continue reading