MPs have to pay VAT on food

Restaurant VAT on foodEating in a Restaurant. Photo: Pixabay

Parliamentarians have to fork out VAT on food

Politicians at the Norwegian Parliament must now pay more for the food after VAT is included in the Parliament’s restaurant. The Director claims that the lack of payment is based on a misunderstanding. There is thus one less clear difference between a King and a Subject.

The prices in the restaurant have thus increased by 13.1 per cent overnight, according to Aftenposten.

The price of a regular cup of coffee has increased from NOK 3 to 4. On Tuesday, a dinner consisting of fish cakes cost NOK 58, while chicken breasts cost NOK 65. The Parliamentary representatives could enjoy chocolate pudding with custard for dessert at a staggering NOK 20.

the Norwegian Parliaments Director Marianne Andreassen says to the newspaper that the price jump does not have anything to do with the much-discussed building case incurring billions above budget, but that a review has revealed that VAT must be paid on the operation of the restaurant. She adds that the value-added tax was not properly addressed earlier. The previous practice was based on a statement from the Oslo county tax office way back in 2001.

“After a review in 2018, the conclusion is that we must do this in a different way in the future. On its own initiative, the Norwegian Parliament has chosen to pay the tax for the last three years,” Andreassen boasts.

the Norwegian Parliament has thus paid NOK 168,000 to the Norwegian Tax Administration. Whether that will be deducted from the politicians or not, is not mentioned.

Explanation

On the intranet the price jump is explained thus:

As of January 7th, the prices in the eateries and on food for meetings increase. In addition to the annual price adjustment, prices in 2019 are further increased due to adjustments to the VAT Act.


The changes in the treatment of value added tax lead to a price increase of approx. 10 per cent on all food, both in the eating places and for the food at meetings. In addition, the annual adjustment is based on the consumer price index, which this year is 3.1 per cent. This means that prices on average will increase by a total of 13.1 per cent.

The changes in the treatment of value added tax come as a result of a review of the current treatment of VAT.



© NTB Scanpix / #Norway Today



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