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WSB on curious types of tax: A look into the vegetable department
Apples cannot be compared with pears. You probably think it would be different with potatoes?
Far from it! There are huge differences here, at least from a sales tax perspective.
🥔 Fresh seed and table potatoes are generally subject to the reduced VAT rate of 7 %.
🚜 If you buy the potatoes directly from your trusted farmer, he usually charges 7.8 % sales tax.
🍠 If you opt for a sweet potato instead of the classic tuber, a whopping 19 % sales tax will be due.
The reason for the higher tax
There is a „list of goods subject to the reduced tax rate“ in the VAT Act and the sweet potato is simply not on it. It is apparently too exotic.
Speaking of exotic
Strictly speaking, our classic potato is itself exotic: it came to us from South America in the 16th century. In contrast, the sweet potato, also imported from Central and South America, has only become better known in this country in recent years. So the question remains:
How many centuries will it take German legislators to naturalize the sweet potato for tax purposes? 😉
👉 Do you have tax-related questions or concerns? Get in touch with us! We at WSB will be happy to advise you:
www.wsb-berater.com/kontakt
#CurrenciesTaxes #Sales tax #Food #TTax law #WSB