School bazaar: Is the cake tax now? Municipalities in turmoil!

School bazaar: Is the cake tax now? Municipalities in turmoil!

Shortly shortly, school and daycare cake bazaar could take an unexpected turn. At the moment, the sweet treats are very popular on festive occasions to collect money for school projects. From 2027, however, a new EU directive that introduces sales tax on baked goods will be reduced. One reason for this is the need to avoid distortions if public institutions such as schools and daycare centers sell products that are not part of their sovereign tasks, such as cakes or books. This reports among other things the colleagues of Berlin Live .

tax liability from 2027

The new tax regulation not only affects the tasty cake sales, but could also infiltrate other areas, such as book sales that take place in town halls. Originally, the regulation was supposed to come into force in 2025, but after multiple shifts, however, January 1, 2027 is now sought. The state association for daycare and school support associations in Saxony-Anhalt emphasizes that there are opportunities to avoid the new tax hurdles. So Ekkehard Wehling recommends that cake easy to give away and instead ask for donations. This strategy has often led to higher income in the past and at the same time circumvents the complicated regulations of the sales tax, such as

It remains to be seen how the individual federal states and institutions will react to this new legislation and whether alternative forms of sales can replace the loss of income from sales tax. Even if the concept of cake bazaars in schools and daycare centers has been established for years, the upcoming changes could significantly change the usual image of school festivals.