- A method for dividing a total price among items with different tax rates in system catering is not appropriate if it results in a discounted product having a higher proportional sale price than its individual sale price.
- The case involves the tax treatment of take-away value meals sold by franchise-operated fast-food restaurants.
- The plaintiff used the Food-and-Paper method to allocate the total price of meals to components subject to different tax rates.
- The tax declarations for 2014 to 2016 were filed using this method.
- A tax audit in 2018 suggested using individual sale prices for tax calculations, as the Food-and-Paper method was deemed inappropriate.
- The audit reviewed the sales and inventory data, including recipes and purchase prices.
Source: datenbank.nwb.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.
