Full VAT for milk substitute products

Unlike normal dairy products, vegan milk alternatives made from soy, rice or oats are not subject to VAT, but are subject to the full VAT rate like other drinks.

The Baden-Württemberg Fiscal Court is convinced that milk substitutes of plant origin are not milk or mixed milk drinks for VAT purposes. This means that, unlike "real" dairy products, they are subject to the full VAT rate that also applies to other drinks. Vegan milk alternatives made from soy, rice or oats are not considered to be dairy products because they do not contain at least 75 % of milk or dairy products in the finished product.