Federal Fiscal Court Rules on VAT Allocation for Discounted Restaurant Menus

• The Federal Fiscal Court ruled on VAT allocation for discounted restaurant menus.
• A fast-food chain sold food and drink menus at a single price for takeaway.
• VAT requires splitting the price: drinks at the standard rate, food at a reduced rate.
• The restaurant used a method based on the cost of goods sold.
• This method sometimes priced drinks higher than their individual selling price.
• The court rejected this method as it did not reflect the reality of a discounted menu.
• Businesses are not required to use the simplest method but must choose a reasonable one.
• Methods that make an item more expensive in a bundle than sold separately are unacceptable.
• VAT allocation must reflect economic reality and not distort pricing against the concept of a discount.

Source: fiscal-requirements.com

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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