Sale of baked goods for on-site consumption in supermarkets

The European Court of Justice must now decide whether even the sale of baked goods for on-site consumption in the entrance area of a supermarket is a restaurant service that is fully subject to VAT.

In almost all larger supermarkets, there is also a bakery in the entrance area that sells baked goods. If the baked goods are also offered for consumption on the spot, the corresponding sales are subject to the regular VAT rate if furniture and crockery are provided for consumption. The Münster Fiscal Court shared this view of the tax office, but the bakery appealed to the Federal Fiscal Court. This court has now suspended the proceedings in order to await a decision by the European Court of Justice as to whether a fully-fledged catering service exists even under the rather simple conditions of the supermarket offer.