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Which VAT rate is correct?

November 21, 2013 | 30,00 EUR | answered by StB Steffen Becker

We are a transportation company, a GmbH.
For Christmas, we pack 50 food parcels.
To do this, we buy the food, cardboard, and transport it to the recipient.
Now the question:
When we write the invoice to the client, which VAT rate should we put on the invoice: 7% or 19%?

StB Steffen Becker

Dear inquirer,

Thank you for your inquiry. I will answer this as part of an initial consultation based on the information provided. Missing or incorrect information can influence the legal outcome.

With judgment of 25.6.2009, case no. V R 25/07, the Federal Fiscal Court (BFH) has decided that each turnover is generally to be considered as a separate, independent service, unless partial services are so closely linked that they objectively form a single inseparable economic service whose division would be unrealistic.

Therefore, in my opinion, the supply of food and transportation as another service do not constitute a single service, so that the delivery of food can be charged at 7% and the transportation at 19%.

I hope I could help you.

Kind regards,
Steffen Becker
Tax advisor