Tax Aspects of lunch supplies in schools by school support associations

1. Introduction

School support associations support in various kind of the educational mandate of schools. They take in many schools also lunch supply. With the following information, the Federal Ministry of Finance provides an overview to the tax environment of midday care through school support associations and indicates planned changes. Information on legal matters or tax individual cases grant the respective regional tax authorities (z. B. Tax Office), which is responsible for processing general taxation procedure.

2. charitable

School support associations are when they meet the requirements of the non-profit law, tax deductible and therefore exempt from corporation and trade tax. If such a club but economically active, then these gains are only tax-free if they were obtained as part of a purpose operation. Can not be classified as a special purpose operation, the economic activity, then subject to this part of the association of corporation and trade tax, if a sales limit of 35.000 euros is exceeded.

A means of welfare, for example, such an objective operation. Supplying students with food and drinks in the context of primary care is classified generally as means of welfare, so that these activities of the corporation and trade tax is exempted.

Among the requirements of the non-profit law and the law on associations, see the article "Volunteering and involvement - Useful information of BMF" more detailed information.

3. value added tax

3.1 General

Entrepreneur who sustainably pursues commercial or professional activity with revenue making entity. Services which a trader in domestic paid in the course of business, subject to sales tax. School support associations are entrepreneurs within the meaning of the VAT Act insofar as sustainable benefits paid to run.

3.2 exemption

The dispensing of food and beverages may, inter alia, in daycare or schools currently be exempt from VAT under the further requirements of § 4 No. 18 Umsatzsteuergesetz (UStG), if this is done by non-profit organizations that have a welfare association or its subdivisions connected as a member.

Besides § 4 No. 23 UStG permits tax-free distribution of food and beverages to pupils in schools. After this exemption provision is inter alia the granting of Concessions by persons and organizations vat-free when they take mostly young persons for education, training or further educational purposes at all times. The term "recording" is not subject to the condition that the young people get accommodation during the night time and full accommodation. Under the exemption, therefore, are in principle also schools. The use of the exemption is only considered if the food service is provided through the support of the device itself. is not required for a claim of exemption that the food is prepared in the school or by the school itself. The issue of school meals must be itself but by the school. This administration considers the Bundesfinanzhof (BFH) in the judgment of 12. February 2009, 47 VR / 07, confirmed. Thereafter, for revenues of paid meals by teachers and students a day school through a private Förderverein from 13 neither the Sales Tax Act or under Article 1 Part A, Section 77 letter i of EC Directive 388 / 1 / EEC (January 2007:.. Article 132 . para 1 letter i VAT system policy - VAT Directive -) sales tax.

3.3 tax rate

After § 12 para. 2 No. 1 UStG supplies of food are generally subject to reduced VAT of 7 percent. Services, however, are exempted from the tax reduction and subject to the general tax rate of 19 percent, although some services from the supply of food is.

The European Court of Justice (ECJ) and the Federal Finance (BFH) have in recent years a number of judgments on the issue of delimitation of supplies and other services in the delivery of food and beverages like. According to the case-law, the general sales tax rate of 19 percent unsuccessful other power when the entrepreneur providing the service in addition to the supply of food provides services that are different from those which necessarily accompany the marketing of food and these service elements outweigh the delivery element high ,

These services include, for example, the provision of tables and chairs as well as the cleaning of furniture and tableware and cutlery used after eating. In these cases, the entrepreneur offers a far more than the mere provision of food beyond performance.

As the BFH in its judgment of 10. August 2006 - 38 VR / 05 - (. BStBl 2007 482 II S.) has clarified these principles are binding on the classic restoration industry as well as for lunch supplies in schools. Especially here, the organizing often transfers the entire implementation of an entrepreneur and liberated as from the significant expense of organizing lunch supplies on their own.

If the provision of food in schools but by a nonprofit corporation under its purpose operation, the reduced VAT rate is applied (§ 12 para. 2 No. 8 letter a UStG). . The basic service of students with food and drinks in schools by non-profit called Mensa clubs or school support associations provides tax exempt purpose according to § 66 of the Tax Code is (means of welfare; cf. application decree Tax Code - AEAO - to § 66 No. 5..).

3.4 deduction and billing

After § 15 para. 1 1 sentence no. 1 UStG the trader may deduct the tax legally due for deliveries and other services that have been performed by another contractor for his company, as a pilot. This requires, among other, that the entrepreneur purchased services used to achieve to deduct qualifying output transactions.

If revenues of a development association subject to sales tax, the conveyor can make weighing on its input power input taxes (z. B. tax, which rests on the acquired food) asserted, thereby reducing their own sales tax liability.

including the possession of a certificate issued under §§ 14, 14a UStG account for claiming the deduction is a requirement (§ 15 para. 1 1 sentence no. 1 2 sentence UStG).

If a contractor a supply or other service to another trader for his business, so this sentence 14 2 No. 1 UStG to issue an invoice is in accordance with § 2 para. Obliged within 6 months.

An invoice must always all in § 14 para. 4 UStG contain said required information. but not exceed the amount in the invoice 150 euros (so-called low-value invoices, § 33 UStDV.) must Notwithstanding § 14 4 para UStG only the following information on the invoice be included.:

• the full name and full address of the supplier
• the date of issue
• the amount and type of goods supplied or the extent and nature of the other service
• the fee plus the applicable tax amount in one lump sum
• in the case of exemption an indication that the exemption applies to the supply or other service.

3.5 grant

Paid to the Friends of a subsidy for the food distribution on the part of the school and so, this may be acting sales tax law to a surcharge or a real non-taxable grant.

As additional consideration such payments are to be regarded, by someone other than the recipient of the supply or other service of the supplier (payee) are granted. An additional consideration is to be assumed that a direct exchange of services between the payee and the paying third party is in the negative.

A real subsidy is however present when the payments are not provided due to a power exchange relationship. This is the case if the payments are not tied to certain transactions, but are applicable regardless of a particular performance.

3.6 Kleinunternehmerregelung

After § 19 para. 1 UStG the VAT due is not charged when the taxable income in the previous calendar year 17 500 euros have not exceeded and will not exceed this amount in the current calendar year 50 000 euros.

4. Planned changes

The ECJ and BFH have expressed in 2011 in several judgments about gastronomic revenues. The Federal Ministry of Finance in cooperation with the countries, the consequences of the jurisprudence developed and tested a so-called BMF. BMF letter addressed as administrative instruction exclusively to the tax authorities, but also indirectly to the taxpayer because they can basically start from a corresponding view of the tax administration.

This BMF provides for the implementation of the rulings. There will be a positive impact on the so-called. Social Catering (especially kindergartens, schools). The BFH has its case for splitting food or abandoned, so that with a corresponding configuration of the facts, the food will be issued in the future at the rate of 7 percent and only the proportion of services will be taxed at 19 percent. The BMF will soon be published on the website of the BMF.

Source: Berlin [Federal Ministry of Finance]