Table of Contents
1. VAT on food supplements in Germany
In Germany, the VAT rate for a food supplement is not determined by product category alone. What matters is how the product is classified under the Combined Nomenclature (CN), the EU’s standardised customs tariff system. Germany’s VAT Act (UStG) lists in Annex 2 all goods eligible for the reduced rate of 7 percent. Food supplements are frequently assigned to position 2106 under Chapter 21, which covers miscellaneous edible preparations, and therefore generally qualify for the reduced rate. Products that fall under a different tariff position must be assessed individually against Annex 2.
Liquid food supplements are a notable exception. In a ruling dated 01.09.2022 (case ref.: 5 K 70/20), the Lower Saxony Fiscal Court held that food supplements suitable for drinking must be treated as beverages under Chapter 22 and are therefore subject to the standard rate of 19 percent. In practice, this means a protein capsule and a protein shake with identical ingredients can be taxed at different rates. Retailers applying a flat 7 percent across their entire range may be issuing incorrect VAT on a portion of their invoices without realising it.
The boundary between food supplements and medicinal products is equally relevant. Under the German Food Supplements Regulation (NemV), a food supplement is defined as a foodstuff that supplements the general diet, contains a concentrate of nutrients or other substances with a nutritional or physiological effect, and is sold in measured doses such as capsules, powders or ampoules. A food supplement must not have a medicinal effect. As soon as a product crosses that boundary, it is classified as a medicinal product and subject to 19 percent VAT. Incorrect declarations can constitute tax evasion, resulting in back payments and, in serious cases, fines.
REDUCED RATE
7 %
Applies to solid food supplements such as capsules, tablets and powders, as long as the product has no medicinal effect.
Capsules
Tablets
Powder
STANDARD RATE
19 %
Applies to liquid food supplements and to any product that qualifies as a medicinal product.
Drinks
Liquid ampoules
Medicines
2. VAT on food supplements in the EU
Retailers selling food supplements across the EU face a challenge that goes beyond the German rules: there is no single European VAT rate for this product category. Each member state sets its own rules, and the differences are significant. Three broad approaches exist.
Some countries, including Austria (10 %) and the Czech Republic (12 %), follow a similar logic to Germany and apply reduced rates to specific chapters of the customs tariff, including Chapter 21. Others, such as France (5.5 %), Finland (13.5 %), Ireland (13.5 %) and the Netherlands (9 %), apply a reduced rate to food supplements as a category, regardless of their tariff classification. A third group, including Luxembourg (3 %), Spain (10 %) and Sweden (currently 6 %, temporarily reduced until 31 December 2027, reverting to 12 % from 1 January 2028), does not explicitly mention food supplements but applies reduced rates to food for human consumption. Since food supplements qualify as food under EU law, they benefit from the reduction in these markets as well.
On the other end of the spectrum, Greece (24 %) excludes food supplements from any reduced rate. Countries such as Bulgaria (20 %), Denmark (25 %), Estonia (24 %) and Hungary (27 %) apply no reduced rate to food supplements either.
Reduced rate
Reduced rate with exceptions
Standard rate
Germany
Reduced rate with exceptions
Austia
10 %
Reduced rate with exceptions
Luxemburg
3 %
Reduced rate with exceptions
Spain
10 %
Reduced rate with exceptions
France
5,5 %
Reduced rate
Netherlands
9 %
Reduced rate
Czech Republic
12 %
Reduced rate
Sweden
12 % / 6 %*
Reduced rate
Finland
13,5 %
Reduced rate
Ireland
13,5 %
Reduced rate
Bulgaria
20 %
Standard rate
Greece
24 %
Standard rate
Estonia
24 %
Standard rate
Denmark
25 %
Standard rate
Hungary
27 %
Standard rate
* Sweden: 6% for a limited period from 1 April 2026 to 31 December 2027, returning to 12% thereafter.
The rates shown are indicative. Whether a food supplement qualifies for a reduced rate depends on its specific tariff classification and the applicable national rules. Some countries apply reductions via food regulation, others via specific customs tariff chapters. When in doubt, individual review is recommended.
Some countries, including Austria (10 %) and the Czech Republic (12 %), follow a similar logic to Germany and apply reduced rates to specific chapters of the customs tariff, including Chapter 21. Others, such as France (5.5 %), Finland (13.5 %), Ireland (13.5 %) and the Netherlands (9 %), apply a reduced rate to food supplements as a category, regardless of their tariff classification. A third group, including Luxembourg (3 %), Spain (10 %) and Sweden (currently 6 %, temporarily reduced until 31 December 2027, reverting to 12 % from 1 January 2028), does not explicitly mention food supplements but applies reduced rates to food for human consumption. Since food supplements qualify as food under EU law, they benefit from the reduction in these markets as well.
3. Classifying food supplements correctly for tax purposes
Knowing the right VAT rate is only one part of the picture. Equally important is whether a product is classified correctly in the first place. An incorrect tariff classification leads directly to the wrong tax treatment, regardless of whether the applicable rate for the correct position is known.
Classification is based on objective criteria: the composition and physical properties of the product, its intended use, and measurable technical characteristics such as weight, dimensions and chemical content. How a product is marketed or labelled carries no weight in this assessment. A practical example: whether a beverage syrup falls under Chapter 21 or Chapter 22 of the customs tariff depends on its alcohol content. An incorrect assumption about that one characteristic leads to the wrong chapter, the wrong rate, and an error on every invoice issued.
For food supplements, this matters more than in most categories because the product type sits at the intersection of several legal boundaries: food preparations, beverages and medicinal products. Whether a liquid product counts as a food supplement or a beverage, whether a high-dose active ingredient pushes a product into medicinal product territory, whether a reformulation requires a new classification: none of these are abstract questions. They are operational decisions that need to be revisited whenever a product changes.
Legal interpretations shift over time as well. Court rulings refine the boundaries, temporary rules expire or come into force, and tax authorities update their positions. What is correctly classified today may not be correct tomorrow. Misclassification can be treated as tax evasion, leading to back payments and, in serious cases, fines. Retailers who are uncertain about the classification of their range should seek clarity before products go to market.
4. How VATRules helps
The three challenges described above can be addressed systematically with VATRules by eClear. The solution provides the correct VAT rate for every product in Germany and across all EU member states, maintained daily and backed by continuous legal and regulatory monitoring. Legislative changes, new court rulings and temporary measures are incorporated automatically, eliminating the need for manual research and updates.
For sellers of food supplements, this means that the correct VAT rate is available for every product in every market they serve. Businesses selling into countries with reduced rates can apply them correctly and protect their margins. Companies operating across multiple jurisdictions no longer need to research VAT rules country by country. And whenever product ranges expand or formulations change, updated VAT rates are available without manual effort. Invoices remain compliant and the risk of retrospective tax assessments is significantly reduced.
The solution integrates directly with existing business systems, including SAP, ensuring that the correct VAT rate is automatically applied throughout invoicing and accounting processes.
