Tax on bake sales in schools?

Created: 05/17/2022, 13:47

A piece of cake can be seen on a plate.

© Stefan Sauer/dpa/symbol image

If students sell cakes at festivals, sales tax on the proceeds could apply from next year.

The state government is currently working on a guideline with which it intends to implement the corresponding European legal provisions.

Prime Minister Winfried Kretschmann (Greens) promised on Tuesday in Stuttgart that these regulations would be cushioned.

"We will see that their bureaucracy is reduced."

Stuttgart - The Green politician reacted to a report by the "Südwest Presse".

In practice, the question is whether a facility such as a daycare center or school will work sustainably to generate income, as the Ministry of Finance explained.

An example: The parents' council of a day-care center organizes a summer party where drinks and cakes are sold.

The target group are children, their parents and grandparents.

There would be no taxes here.

However, if the parents' council runs a mulled wine stand at the community Christmas market every year, that would be something different and taxes would have to be paid.

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Municipalities are also upset about the new tax rules.

"In the town halls, you will have to deal with the review of your own processes and their VAT relevance for months," explained Steffen Jäger, President of the Municipal Assembly.

"Many tax effects on daycare centers and schools, building yards, indoor and outdoor pools and much more must be examined intensively.

Translated, that means pure bureaucracy.” Even if the reason for the EU VAT Directive is to avoid distortions of competition, it urgently needs to be reconsidered.

dpa