Fiscal legislation has been so confused by the PSD and PNL Governments in recent years that some of the strangest situations appear. The issue of changing the VAT for products with added sugar also has anomalies from a fiscal perspective.
Ice creamPhoto: Viktorfischer | Dreamstime.com
Let’s say you want to eat an ice cream or a cake. If there are a few tables at that confectionery or gelateria and you consume the product there, you will have 9% VAT. If you order ice cream or cake to go, then it will be 19%.
Confectioneries do not keep two prices in the window. So, it assumes the VAT loss of 10 percentage points if you buy a bundled product.
You can, however, buy the product with 9% VAT and thus help entrepreneurs. You say you want to eat the cake or ice cream there, and after he gives you the tax receipt, you will state that you have changed your mind and that you want the product to be taken away. In this way, ANAF is fooled by the legislation, and you helped the entrepreneur.
Why is this happening
Mariana Vizoli, taxation expert and author of the book “VAT from A to Z. Practical Guide”, explained the legislation from this point of view at the TaxEU Forum.
In the case of restaurant and catering services, they remained at the 9% rate, but foods with added sugar of min. 10g/100g product from the application of the 9% quota.
As a result, according to Mariana Vizoli’s presentation, if we buy cakes from the store, the 19% rate is applied, while the 9% rate is applied to the cake served at the pastry shop/restaurant.
- “But restaurants will also apply 19% when they deliver home products with added sugar within this limit (the operation being qualified as delivery, not the provision of restaurant services). (See OMFP 3659/2018 – qualification as restaurant/catering services vs. delivery of goods)”.
*Delivery is also considered if you order the product as a package from the restaurant location
Why is this happening? Because the VAT Directive does not allow restaurant and catering services to exclude products with added sugar, which is allowed for food deliveries.
“There is the problem of confectioneries, if they provide restaurant services. Yes! Coffee shops are not included in the restaurant category, but from the VAT perspective, they are restaurant services, as are bars and many other establishments serving the population,” explained the tax expert.
According to her, the gelateria provides restaurant services from a fiscal perspective.
Restaurant service means that someone serves food, drink, cake at the restaurant location. Take away is considered delivery of goods.
“Tones selling such products are considered to be making deliveries. Only those who serve there at the provider’s location, that is a restaurant service. Even the restaurant, if it serves food for home, it is no longer a restaurant service, but a delivery of a good”, stated Vizoli.
Photo source: Dreamstime.com