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€100 million brand XXL Nutrition considers moving to Germany due to consumption tax

From Stack3d
Xxl Nutrition Consumption Tax Issues

XXL Nutrition is one of the giant health and nutrition companies in Europe, which has a massive market percentage in its home country of the Netherlands and is successfully selling its selection across the continent. XXL plays in all sorts of shapes, sizes, formats, and retail spaces, offering classics like protein powder and amino acids, as well as more complex functional innovations like protein pudding and beverages in major supermarkets and convenience stores.

The giant XXL Nutrition has just shed some light on a recent tax enforcement that has reclassified flavored, drinkable powdered supplements as lemonade in solid form, triggering roughly €1 per kilogram consumption tax applied retroactively up to five years. The interpretation was never communicated, yet assessments are now being issued, forcing price increases and creating millions in annual tax exposure. Brands and retailers not in the Netherlands that ship in remain exempt, leaving domestic players like XXL obviously and drastically disadvantaged.

The move has left XXL Nutrition, again, one of the most successful health and nutrition companies in the Netherlands, considering leaving the country altogether and shifting over to Germany. That would allow it to avoid the consumption tax while still selling to its loyal Dutch fans and followers. To make the move even more enticing, XXL wouldn’t actually have to go very far, as its headquarters is a short drive away from Germany in Deurne, Netherlands.