Why did the VAT on cottage cheese in Rudi decrease?
The reduction in the Rudi VAT on cottage cheese next year was revealed in the draft of the 2024 tax package. The proposal would amend the VAT Act, so that the VAT on products belonging to the “dessert-type cheese preparation” category would be reduced to 18% instead of the current 27%. This step is interesting from several points of view, as the possibility of VAT reduction has also arisen for many other products and services in response to various economic challenges.
According to the rationale of the draft, dessert-type cheese products include those that are already subject to 18% VAT based on the Food Code, while others (belonging to headings 2106 and 1806) are subject to a 27% rate. The purpose of the change is consistency and unification, so that the same VAT rate is applied to products belonging to the same category.
However, this move raises the question of why similar VAT reductions are not applied in other areas. For example, why is there 5% VAT on books, while 27% VAT applies to e-books? The district heating service can also be mentioned, where the service is taxed at a VAT rate of 5%, while the VAT rate for firewood is still 27%. And what about other foods?
Additional anomalies can be discovered in the area of VAT rates, and many are arguing for a reduction in VAT amid inflation and other economic challenges. Reducing the VAT on curd cheese could only be a small part of the wider VAT reduction, which would be beneficial for both consumers and the economy – this topic is covered in the Pénzcentrum article.
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