The claim
There are claims that students have to pay taxes when they sell cakes to supplement their class budget.
Our conclusion
This assumption is wrong. Students can continue to sell their cakes tax-free. Despite an EU directive to avoid distortions of competition, selling cakes in schools remains VAT-free.
Rumors and misinformation spread like wildfire on the internet and social media. One of these rumors concerns the harmless sale of cakes by students. The idea of the state reaching into their pockets for this beloved tradition sounds almost bizarre.
Bake sale rumors/claims
Social media and some news sources have spread the news that students will have to pay taxes if they sell cakes to supplement their class budget. This assumption caused confusion and outrage.
Evaluation
In fact, there will be no new taxes on cake sales in schools. An EU directive against distortions of competition, which was initially strictly interpreted in Baden-Württemberg, has now been corrected in its application.
The case
The confusion arose from a misleading media report that suggested a new tax liability. In fact, the EU directive refers to public law institutions that have to pay sales tax if their offers come into direct competition with private providers. However, the implementation of this regulation in Germany is designed in such a way that the sale of cakes by students is not affected as long as it does not occur regularly and to an extent that exceeds certain income limits.
Conclusion
The interpretation of the directive initially differed in the federal states.
While Baden-Württemberg initially pursued a stricter interpretation, other states such as North Rhine-Westphalia and Thuringia dealt with the issue in a more relaxed manner. The bottom line is that cake sales by students remain tax-free as long as they are occasional and not intended to make a profit.
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Source: DPA
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Notes:
1) This content reflects the current state of affairs at the time of publication. The reproduction of individual images, screenshots, embeds or video sequences serves to discuss the topic. 2) Individual contributions were created through the use of machine assistance and were carefully checked by the Mimikama editorial team before publication. ( Reason )