Spoiler: According to the latest findings, a sausage is indeed a sausage. But a cookie is not necessarily a cookie.

With regard to the tax rate, VAT law differentiates between the ingredients on the one hand and the type of use on the other.

As bakery products and therefore staple foods, cookies are subject to the reduced VAT rate of 7 %. However, the same tax rate also applies to animal feed. This gives rise to a curiosity:
While only 7 % VAT is payable on dog cookies, you have to pay a full 19 % VAT on baby cookies.

This is because, absurdly, baby food is not considered a staple food in Germany. Accordingly, it makes no difference from a tax point of view whether baby cookies are made from the same ingredients as adult cookies.

And another fun fact - or rather something to cry about?

The type of use is also not always decisive. This is because it has been decided by the highest court that (adult) cookies that are used as promotional items still retain the reduced tax rate! How the matter should be assessed in the case of puppy cookies with an advertising character remains to be discussed ...

Unfortunately, there is nothing we can do about these absurdities. But we are happy to help you save VAT in other areas.

👉 Get in touch with us! We will be happy to assist you with your tax questions and concerns:
www.wsb-berater.com

#CurrenciesTaxes #Sales tax #Biscuits #Baked goods #TTax law #WSB