- The Court of The Hague has ruled that Sclerotica, also known as ‘Magic Mushrooms’, are not considered foodstuffs as they are sold and used solely for their hallucinogenic effect and do not provide significant nutrients.
- An interested party, X, sells Sclerotica and pays 21% VAT on turnover, but the reduced VAT rate for foodstuffs does not apply as food is defined as products consumed for nutrients, energy supply, and regulation of the human organism.
- Although Sclerotica contains some necessary nutrients, they are consumed in small quantities due to their hallucinatory effect.
- The appeal to the principle of legal certainty is rejected, and previous rulings refer to a different table entry.
- The interpretation of the term ‘foodstuffs for human consumption’ remains uncertain.
Source Taxlive
Latest Posts in "Netherlands"
- VAT and School Building Transfers: Economic Activity, Consideration, and Legal Certainty in Dutch Case Law
- New policy note on intermediation in share transactions
- No Excuse for Unpaid VAT Without Filing Invitation; Fine Upheld but Reduced to €1,500
- No VAT Deduction for Exempt Rental by Partnership to BV, Court Den Bosch 2025
- Penalty for payment of additional VAT assessment reduced due to incidental negligence
