In the market model, slaughterhouses pay the animal welfare bonus to farmers. The surcharge is part of the settlement and is shown directly on the invoice. The average tax rate is applied here for flat-rate farmers.
“On the other hand, the total payment for the supply of cattle for slaughter is subject to the reduced tax rate of seven percent if the animal owner value added taxflat rate does not apply,” says Alexander Kimmerle, tax advisor at Ecovis.
So far, the fund model has applied. Animal owners received their remuneration for more animal welfare from the food trade. The amount was billed separately. Since this was an additional turnover, the standard tax rate was applied here despite average taxation. That is now changing with the market model.