Years of HV recommendations have been taken up by the BMF and are to be implemented by 2025. Game changer for social institutions and food banks.
Vienna (OTS) – The trade association welcomes today’s announcement Finance Minister Magnus Brunnerfood donations to organizations that pursue charitable purposes from 2025 Exempt from sales tax liability.
“Today’s announcement by the Finance Minister closes an important component in the distribution of food between food retailers and food banks and social institutions. This tax adjustment is a real one Game changer, because this will make it even easier for companies to donate in the future. In the last decade, the amount of food donations has tripled, but the need has also increased by 25 percent due to the inflation crisis,” says Rainer Willmanaging director of the non-partisan trade association and long-time advisory board member of Tafel Austria.
Tax exemption makes it easier to pass on in trade, production and gastronomy
Food is precious, which is why retailers have been implementing voluntary initiatives for many years to avoid food waste and to actively promote its distribution to social organizations. Supermarkets pass on food that is no longer for sale but is still edible to food banks and other social institutions. Measures that had to be legally required in other European countries have long been in place in Austria lived reality.
“The tax exemption for food donations from 2025 will also make it much easier to pass on preliminary stages of the food trade, such as agricultural production, production but also gastronomy, where there is still a lot to be had,” is Will convinced.
Food retailers donate 20,000 tons of food to social institutions every year
The entire food retail and food wholesale trade is responsible for less than 9% of food waste. At the same time, local retailers are the largest donors of food to charitable institutions. The industry is an absolute pioneer in international comparison and donates annually 20,000 tons of food an social organizations. In addition, will 10,000 tons of foods that are no longer for sale Feed production utilized.
“We only dispose of food when it is no longer suitable for consumption and can no longer be processed into animal feed. On average, this affects less than 0.5 percent of the overall range.”confirmed Rainer Will.
The long-standing AGM demand for more legal certainty will be implemented by 2025
In recent years, the trade association has been vehemently in favor of food donations more legal certainty for traders occurred. The background: In Austria, retailers are forced by tax and food law to pass on food in one Gray area to act. Food must be declared as spoilage before it is passed on in order to be able to apply the input tax. However, the condition for this would be that the goods are no longer sellable/fit for circulation. However, this means that they can no longer be marketed through social institutions.
“Fortunately, this legal gray area is now clearly regulated by exempting food donations to charitable organizations from sales tax. A nice Easter present for the Austrian social institutions and food banks.”said trade spokesman Rainer Will finally.
Questions & Contact:
Mag. Gerald Kühberger, MA
Press spokesman
T +43 (1) 406 22 36 – 77
E gerald.kuehberger@handelsverband.at
Mag. Manuel Friedl
Senior Communications Manager
T +43 (01) 406 22 36 – 80
E manuel.friedl@handelsverband.at
www.handelsverband.at