- The Federal Fiscal Court ruled that a method leading to a higher price for a menu item than its individual sale price is inappropriate.
- Two companies operated fast-food restaurants selling combo meals at a single price for takeaway.
- The sale of drinks is taxed at the standard rate of 19 percent, while food is taxed at a reduced rate of 7 percent.
- Since July 2014, the companies used the “Food-and-Paper” method to allocate the combo meal price based on cost of goods.
- The tax office found this method inappropriate, preferring allocation by individual sale prices.
- The court disagreed with the tax office, stating that the simplest method is not always required.
- However, the court did not accept the “Food-and-Paper” method as it could result in a higher menu item price than its individual sale price.
- A similar method was also rejected in another case by the court.
Source: bundesfinanzhof.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.
