- The Amsterdam Court of Appeal ruled that the reduced VAT rate does not apply to the supply of magic truffles.
- The composition and purpose for which the substances are taken are both important factors. Despite containing psychoactive substances, magic truffles are not covered by the Opium Act and can be grown and traded freely.
- The court determined that the purpose of consumption is not for useful or necessary foodstuffs, therefore the reduced VAT rate does not apply.
- The comparison to culinary truffles also does not support the argument for a reduced rate.
Source Taxlive
Latest Posts in "Netherlands"
- VAT deduction apartment: business office or home? Ruling on actual use and the principle of equality
- Budget 2026: VAT Rate Reversals, Property Rules & Cross-Border Compliance
- No deduction for VAT on consultancy costs for business succession within family
- VAT exemption for games of chance: strict interpretation for B2B game content
- Court Decision on Tax Rate for Art Products: Classification and Maker Status Dispute
