Have I paid extra tax for olive oil?

12 comments
  1. My understanding is you pay 7% tax on non alcoholic food items but looks like I’ve paid 19% for a btl of olive oil. If so, would you go back for the €1.60 out of principle? 😂

  2. The 7% and 19% have nothing to do with alcohol, it’s about basic necessities and luxury items. But don’t try to actually apply it. Some things make more sense (potato: 7%, sweetpotato 19%) an others make less sense. Animal food has a 7% tax rate, baby food has a 19% tax rate.

    So I’ll just assume that having your olive oil being virgin is considered luxurious.

  3. According to appendix 2 of the Umsatzsteuergesetz, 7 % for **Animal and vegetable fats and oils and their fractions, wholly or partly hydrogenated, interesterified, re-esterified or elaidinated, whether or not refined but not further processed, excluding hydrogenated castor oil**

    Olio Extravergine is neither hydrogenated, interesterified, re-esterified nor elaidinated etc., so the standard 19 % tax applies.

  4. *You* paid the price posted on the shelf.

    *The shop* (seemingly incorrectly) pays 2.23€ rather than 0.91€ in VAT to the tax office for each bottle sold.

    ^(Technically, they pay a lot less, because from all the VAT on stuff they sell they deduct all the VAT on stuff they buy, and only the difference is the amount of VAT they owe to the tax office. This is why it is called “value added tax”: They owe tax only on the value they add.)

  5. To make things even more difficult, smoothies incur 7% vat (food) while milkshake 19% (drink) but only if take away. If you consume it at the location (glass vs disposable cup) both incur 19%.

    So how do you distinguish between the two, as the ingredients are basically the same? You draw a spoon or a straw across the cup. If a line is formed in the liquid, lasting more than 5 seconds, it’s a smoothie. I shit you not. A buddy of mine had a smoothie / shake shop and lost his mind over this bs from the finanzamt

  6. Der Kassenzettel says *B for the olive oil, so it is only 7%?

    What’s your issue with this?

    🤷‍♀️

  7. Next to the items there is always an A (19%) or B (7%), which indicates in which VAT class the product is. So for 34.39€ you have bought products taxed at 19% and for 26.40€ you have bought products taxed at 7%.

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