- BFH ruled that a pricing method for discount menus leading to a higher price for a menu item than its individual sale price is inappropriate.
- Two GmbHs operated fast-food franchises selling discount menus for off-premises consumption.
- The sale of drinks is taxed at 19 percent and food at 7 percent.
- Since July 2014, the “Food-and-Paper” method was used to allocate menu prices based on cost of goods.
- This method typically results in lower tax than allocation by individual sale prices.
- The tax office deemed the method inappropriate, while the tax court found it acceptable.
- BFH disagreed with the tax court, stating the method is not appropriate if it results in a menu item price exceeding its individual sale price.
- BFH emphasized that a discounted menu item should not be priced higher than its individual sale price.
- A similar method was also rejected by BFH in a related case.
Source: blogs.pwc.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.
