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You know why throwing away even good food is preferable to donating it? Because if you throw it away you just account for it as a loss, but if you donate it you
by remotefonts 3y ago
You know why throwing away even good food is preferable to donating it? Because if you throw it away you just account for it as a loss, but if you donate it you still owe the government the VAT just like if you sold it.
- lolc 3y agoI'm sure this is not how VAT works where I live. You only owe tax on the value you added. If you give it away, value added is zero. It's in the name!
- remotefonts 3y agoI know it's how it works in Portugal and I wouldn't be surprised if it was because of some EU tax directive that it's like that. There are some exceptions, ofcourse.
- lolc 3y agoThat's surprising! So say I buy a bunch of produce from a farmer for my shop in Portugal. In the case where I sell it I'd expect to pay VAT on my margin. But how would my accounting differ between putting it in trash bags and putting it in a box labeled "free"?