- The recent ruling by the Court of Justice of the European Union (CJEU) states that beverages containing milk can be subject to different VAT rates depending on whether they are purchased in a restaurant or a store.
- The CJEU also provided guidelines on when this differentiation is permissible, stating that it should not be based solely on the classification of the establishment.
- The Polish court will now determine the similarity between products sold by gastronomic businesses and those sold by retail stores.
- According to the CJEU, different VAT rates can be applied when the products or services are not similar, not interchangeable, and have significant differences that affect the consumer’s purchasing decision.
- The ruling suggests that minor differences in satisfying the same need can justify different VAT rates.
- It is unclear whether the Ministry of Finance should react to the ruling, but it is unlikely that a single solution will be found at the regulatory level.
- The practice will determine which products are similar enough to have the same tax conditions and which have enough differences to be treated differently.
Source: podatki.gazetaprawna.pl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
