Taxation of Home Deliveries of Pizzas by Catering Establishments

Facts

X. + Co., a limited partnership based in Y., operates various restaurants and also delivers ready-made pizzas to customers' homes upon order. The Federal Tax Administration determined that home deliveries by establishments with on-site consumption facilities are taxable at the rate of 6.5%, provided that the sale does not take place in spatially and organizationally separate sales premises. The taxpayer filed a complaint against this decision, as it was of the opinion that home deliveries of pizzas should be subject to VAT at the rate of 2%.

Considerations

The Federal Court decided that Art. 27 para. 1 lit. a no. 1 VATO, which regulates the distinction between catering services and the supply of food and beverages, is compatible with the Federal Constitution. The distinguishing feature chosen by the Ordinance Issuer - the provision of special facilities for on-site consumption - is not arbitrary and does not violate the principle of legal equality. The interpretation of the Federal Tax Administration, according to which a catering service is provided if there is a possibility of consumption on site, is compatible with the purpose of the provision. However, the demand of the…