No doubt the tax system is one from the most complicated branches of law. Several one thousand the parties to laws and regulations, the vast number of conflicting individual interpretations and the constant changes in regulations are only part of the problems that entrepreneurs have to deal with every day.
It is not easy to radically simplify tax law (although such demands arise constantly, especially before the elections), but at least tax rates could be set in such a way that they fit in some simple logic. However, the amount of public tribute may be the result of accidental and difficult to understand decisions of the legislator.
Examples of such absurdities can be found, among other things, in the area of tax, which generates the highest revenue for the state budget. It is a tax on goods and services known more as VAT.
The Act provides for different VAT rates on different food items. It would be no wonder if several categories of products could be distinguished according to a simple criterion. However, the tax rates in this industry look as if the legislator wanted to be the author of a grim joke to the detriment of entrepreneurs operating in gastronomy.
Some believe that tap water is no different from mineral water or that this difference is very small. Without addressing the issue in substance from inorganic chemistry, it can be considered that the same or very similar products should be taxed at the same VAT rate.
For the most important of all beverages (water), however, this principle does not apply. On first „a glance”, it is not easy to understand the difference between mineral water and spring water, however, it is much easier to see the ludicrous differentiation in the taxation of both products.
In the first where the VAT rate is 8% a In the second Almost three times more (23%). For what reasons can almost identical products be so different from the public tribute charged to the consumer? The only person who can answer this question is the legislator who developed this design.
Another example of the difficult to understand differentiation of VAT rates in the food sector is the case two alternative grill or sandwich additives, namely mustard and mustard sauce. The legislature treated second from these products in a much more privileged way.
Mustard sauce has been charged a VAT rate of 8% Whereas ‘classical’ mustard is taxed at the standard amount i.e. 23% Without the expertise of the catering industry, it is sometimes difficult to understand all the differences between these products, but it is not difficult to imagine that many producers may come up with the idea of tax optimization, which is to force and not completely accurately describe mustard as mustard sauce, as in this case the difference on the product label may mean measurable savings.
Not only can we become consumers of almost identical products taxed at VAT rates at a completely different level by going to a barbecue. We can see a similar “revelationship” for example during the holiday going to the bakery. The difference between milk ice cream and sorbet seems much more obvious than for mustard and mustard sauce.
In this case, however, the legislator has chosen an even greater spread of tax on goods and services. Sorbets (frozen fruit juices) were placed at almost five times the tax rate. Classic ice cream are taxed at VAT level 5% while the less popular "water ice" for reasons more indeterminate are included in the rate category 23%
The addition of tax considerations on desserts, drinks and mustard may be another widely known product of tortilla (in this case as a typical ready meal). Discussion of the previous third Examples of the difficult to understand tax differentiation into similar products might suggest that, for example, tortilla in the Sicilian version is taxed three times the VAT rate than tortilla in the Corsican version.
In this case, the difference is slightly more complicated. The point is that an order in a catering facility of such a dish can be treated as a supply of goods or services which will result in differences in the value of VAT. Sales of the said product may be subject to the rate 5% or 8% depending on the circumstances.
If the customer is waiting for the tortilla at the table, he will receive it from the waiter and can choose it from the menu, then the VAT rate will apply. 8% suitable for restaurant service.
However, the amount of taxation will decrease to 5% where the consumer himself collects the product from the seller behind the counter and the price of the meal was placed on the board, the operation should be considered as the delivery of the goods and the appropriate rate for the finished meals applied.
Tax law should not only provide budget revenues, but also facilitate or at least not complicate the lives of entrepreneurs. The provisions of the VAT Act discussed should be assessed as at least requiring reflection...