With or without sugar: Romanian coffee shops have started a lawsuit against the state over coffee taxation

Published 2024년 11월 22일

Tridge summary

Romanian coffee shop owners have challenged the government's interpretation of tax legislation on sugary drinks. The government has increased the VAT rate for sugary drinks from 9% to 19% effective 2024, but the business owners argue that coffee and tea should not be included in this category as not all are consumed with sugar. The tax office has started inspecting the accounting of coffee shops and restaurants for products with sugar content and has begun to automatically include coffee and tea in the 19% tax bracket. Some business owners have taken the tax office to court, with one already winning a lawsuit.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In Romania, a number of coffee shop owners have gone to court over a disagreement with how government authorities have interpreted changes in the legislation on the taxation of sugary drinks: the business believes that coffee and tea cannot automatically be counted as such, and has gotten into trouble with the tax authorities. As "European Truth" writes, Digi24 reports this. From 2024, Romania introduced a higher VAT for sugary drinks, increasing it from 9% to 19%. However, in the legislative changes, according to the business, uncertainty remained regarding coffee and tea, since not everyone drinks them with sugar. In the summer, the tax office began active inspections of how coffee shops and restaurants account for products with sugar content, and began to automatically include coffee and tea in what should have been taxed at the rate of 19%. "There were certain exceptions. We applied for them, but then it turned out that it didn't work and we would have to pay the difference," ...
Source: Epravda

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