Tuesday, July 12, 2011

Russian Court Holds that McDonald Is a “Food Store”

A court in Moscow found that McDonald’s is not a restaurant but rather a food store, at least for the purposes of the VAT taxation. Restaurant services are taxable at 18%, while the sale of food stuffs is taxable at 10% VAT. Accordingly, the tax authorities insisted that the company provides restaurant services, while the company insisted it only sells food. The tax authorities demanded some $20 mln of underpaid taxes for the years 2006-2007 but courts in three instances held in McDonald’s favor.

http://www.lenta.ru/news/2011/07/12/magazin/

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