• Germany's news in English

'Eating posture' tax codes to be scrapped

The Local · 31 Aug 2012, 16:23

Published: 31 Aug 2012 16:23 GMT+02:00

Facebook Twitter Google+ reddit

According to a report in Bild newspaper, the finance ministry intends to change the current tax laws, which subject fast food sellers to 19 percent value added tax if their customers eat while seated, and only seven percent if customers eat while standing.

In the future, the ministry plans to just levy the seven percent rate.

Traditionally, 'restaurant services' are taxed at the standard 19 percent tax rate, but 'food delivery' is one of 50 categories that qualifies for Germany's reduced tax rate.

Last year Germany's top financial court ruled that fast food qualified as 'food delivery' - and the corresponding lower tax rate - if patrons ate their sausages or fries while standing.

The decision followed an earlier one by the European Court of Justice in Luxembourg, which ruled that popcorn and nachos served in cinemas must be taxed at the reduced rate of seven percent - insisting they fell under the category of food delivery. This was true, said the court, even if the items were heated.

Germany's finance ministry is set to discuss changing the law sometime in September, Bild reported.

The reduced tax rate was originally introduced to prevent basic necessities from becoming too expensive for the poor, but the list of exceptions has since grown to include things like hotel stays and theatre tickets.

However, grocery products like meat, milk, coffee still make up the largest category of products taxed at the reduced rate.

Story continues below…

The Local/DPA/sh

The Local (news@thelocal.de)

Facebook Twitter Google+ reddit

Your comments about this article

18:04 August 31, 2012 by murka
German lawmakers are chronically incapable of simplifying the tax code. Instead, they introduce yet another patch over the old mess of the regulations + taxes, which must be applied recursively.

They want to protect the poor, what about protecting small biz owners against exorbitant tax adviser and bookkeeping effort?
Today's headlines
Student fined for spying on women via their webcams
Photo: DPA

Student from Munich fined €1,000 for spying on 32 different computers, using their webcams to take photographs, or record their keyboard history.

This is how much startup geeks earn in Germany
Photo: DPA

A comprehensive new survey of 143 startup founders shows how much you are likely to be earning at a German startup, from entry level all the way up to sitting on the board.

Man dies after beating for peeing near Freiburg church
The Johannes Church in Freiburg. Photo Jörgens Mi/Wikipedia

A middle-aged man from southern Germany has died after being attacked by a group of men who took umbrage with the fact he was urinating in the vicinity of a church.

The Local List
Seven German celebrities with uncanny doppelgängers
Former Berlin mayor Klaus Wowereit and actor Alec Baldwin. Photo: DPA; Gage Skidmore, Wikimedia Commons

Check out these seven look-a-likes of well known German figures - we admit that some are more tenuous than others...

Israel seeks to buy three new German submarines: report
A Dolphin class submarine. Photo: DPA

Israel is seeking to buy three more advanced submarines from Germany at a combined price of €1.2 billion, an Israeli newspaper reported Friday.

Here’s where people live the longest in Germany
Photo: DPA

Germans down south seem to know the secret to a long life.

More Germans identify as LGBT than in rest of Europe
Photo: DPA

The percentage of the German population which identifies as lesbian, gay, bisexual or transgender is higher than anywhere else in Europe, according to a new study.

'Reichsbürger' pair attack police in Saxony-Anhalt
File photo: DPA.

A "Reichsbürger" and his wife attacked police officers on Thursday, just a day after another Reichsbürger fatally shot an officer in Bavaria.

Five things not to miss at the Frankfurt Book Fair
Photo: DPA

From consulting a book doctor to immersing yourself in an author's world with the help of virtual reality, here are five things not to miss at this week's Frankfurt Book Fair, the world's largest publishing event.

Parents who don't get nursery spot for kid entitled to pay
Photo: DPA

The Federal Court of Justice (BGH) ruled on Thursday that parents whose children don't receive placements in nursery care are entitled to compensation.

Sponsored Article
How to vote absentee from abroad in the US elections
10 things you never knew about socialist East Germany
Sponsored Article
Last chance to vote absentee in the US elections
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
Sponsored Article
How to vote absentee from abroad in the US elections
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
Eleven famous Germans with surnames that'll make your sides split
The best ways to get a visa as an American in Germany
jobs available
Toytown Germany
Germany's English-speaking crowd