Will children and parents still be allowed to sell cakes tax-free at bazaars and school festivals? This question recently heated up the spirits. Now the country has translated the tiresome EU regulation.
Stuttgart (dpa / lsw) - If children or parents sell cakes themselves at school festivals, the proceeds will continue to be exempt from sales tax in the future. The school, as part of the state, must not appear as a seller. This is the new guideline that the state government has agreed on, as the "Südwest Presse" and the German Press Agency found out on Friday. The country is thus implementing the corresponding European legal provisions. But that also means that if students sell pastries at the weekly market every Saturday, for example, they have to pay taxes like a small business if they earn more than 22,000 euros a year, as they do now.
The question of whether children and young people who sell cakes for their class trip or for a good cause will have to pay taxes in the future has recently caused some excitement, especially in schools. The core issue was whether services were provided to public institutions that could also be provided by a private third party. Translated, this means: If, for example, parents bake a cake for a school festival that is then to be sold, a baker could have delivered it and made money with it. With its VAT directive, the EU wants to prevent private entrepreneurs from being disadvantaged in competition with state institutions.
