Poland: “Ready-to-eat meals” subject to reduced VAT rate (CJEU judgment)

A CJEU judgment concerning “ready-to-eat meals” subject to a reduced VAT rate

A CJEU judgment concerning “ready-to-eat meals” subject to a reduced VAT rate

The Court of Justice of the European Union (CJEU) issued a judgment holding that the sale of “ready-to-eat meals” falls within the category of “restaurant and catering services,” and therefore, a reduced value added tax (VAT) rate of 5% applies (instead of a VAT rate of 8%).

The CJEU’s judgment confirms that in order to make a distinction between a provision of service and a supply of goods, the predominant element of the transaction is determined based on the consumer’s point of view.

When the end-customer chooses not to benefit from the resources made available by the seller that would accompany the consumption of the food supplied, it must be concluded that no support services accompanied the supply of that food and that the 5% VAT rate applies.

Read an April 2021 report prepared by the KPMG member firm in Poland

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