Schnapps, that was his last word - and his tax concession was gone. What a South Baden fruit grower experienced before the tax court ...

The farmer in question grew fruit and sometimes distilled schnapps from his fruit. He sold the fruit brandies to walk-in customers and farm stores.

In his tax return, he opted for the favorable average rate taxation for liquor sales. This applies to agricultural and forestry businesses and significantly reduces the tax to be paid.

Unfortunately, according to the Baden-Württemberg tax court, this was a bad idea. Instead, the farmer had to pay regular tax on his liquor sales at 19 %.

The judges' most serious reasoning:
- The production of alcohol from fruit is not tax-privileged fruit growing.
- The distillery is also not a secondary agricultural enterprise because a distillery boiler is not part of a farmer's typical equipment.
- The South Baden tradition of distilling schnapps on farms does not justify a tax concession.

100 % Fruit brandy - 41 % Vol. - 19 % VAT

The farmer must have had a shot of schnapps after the shock. 
With proper sales tax rotations ... 😉

👉 Do you have tax-related questions or concerns? Please contact us! We will be happy to advise you:
www.wsb-berater.com/kontakt

#Obstbauer #Schnapsidee #Umsatzsteuer #Finanzgericht #Steuerberatung #WSB