Germany Fiscal Court Clarifies VAT Treatment of Dinner Shows

The German Federal Fiscal Court Feb. 26 posted online Decision No. XI B 61/14, clarifying the VAT treatment of dinner shows. The taxpayer, an event organizer, offered dinner shows for which customers paid a single fee for food and entertainment, with alcoholic beverages separately stated. The taxpayer argued that the entertainment was subject to a reduced VAT rate, and the food was subject to the standard rate. The Tax Office classified the entire fee as subject to the standard rate. On appeal, the Federal Fiscal Court found that: 1) the Tax Court determined a single supply with detailed reasoning that ...