VAT regulations for school festivals or cake sales in NRW: Update from the government

• The Neuregelung der Umsatzbesteuerung der öffentlichen Hand has led to questions about whether the sale of cakes at schools in Nordrhein-Westfalen will be subject to VAT.
• Minister der Finanzen Dr. Marcus Optendrenk has provided reassurance that the sale of cakes by changing groups of students, parent initiatives, or student representatives will not be subject to VAT.
• The same applies to other occasional sales by students or parents, such as pizza sales, and entrance fees for performances by student groups.
• Exceptions apply if the group regularly and sustainably carries out such events, but even in these cases, VAT is not applicable if the previous year’s earnings were less than 22,000 EUR and the current year’s earnings are expected to be less than 50,000 EUR.
• The new § 2b in the UStG, which makes the public sector generally subject to VAT, will come into effect in 2025, with exceptions for certain non-competitive tasks.
• Nordrhein-Westfalen is advocating for an extension of the transition period for the implementation of this regulation.

Source: haufe.de

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.

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