The Dutch Supreme Court has ruled that the sale of psilocybin-containing “magic truffles” is subject to the standard 21% VAT rate.
Food or Psychoactive Substance? VAT Rate Determined
The ruling concludes a significant dispute followed by European tax experts, as reported by fiscaalvanmorgen.nl. “Magic truffles” contain psilocybin and psilocin (also known as sclerotia).
In September 2019, the Dutch tax authorities stated that the sale of these truffles was subject to the standard VAT rate. One company argued for a 9% rate but ultimately lost its case in court.
Appeal Court: Not Traditional Food
The Hague Court of Appeal determined that “magic truffles” are distinct from traditional food intended for consumption. While containing nutrients, they are consumed for their psychedelic effects.
Principle of Legal Certainty
The company appealed, citing previous Dutch Supreme Court rulings regarding hallucinogenic mushrooms (“paddo”), which had been subject to preferential VAT treatment as traditional food. The company argued for consistent application of this interpretation to “magic truffles,” invoking the principle of legal certainty.
Supreme Court Rejects Argument
However, the Dutch Supreme Court rejected this argument, clarifying that prior rulings on “paddo” do not automatically classify all edible products as foodstuffs. This specifically excludes “magic truffles,” the underground part of the mushroom.
The Supreme Court fully agreed with the appeal court that “magic truffles” are consumed for their psychedelic effects, not their nutritional value.
This material is protected by copyright law – all rights reserved. Further distribution of the article requires the publisher’s consent. INFOR PL S.A. grants licenses.
Enter the email address of the selected person, and we will send them free access to this article.
Related
Copyright © INFOR PL S.A.
