Germany MOF Releases Court Decisions Explaining Applicability of Reduced VAT Rate for Music Event

The German Ministry of Finance Oct. 26 released Tax Court Decisions Nos. VR 16/17 and VR 17/17, explaining the application of the reduced VAT rate on music event ticket fees. A taxpayer organized various music events, and applied for the entrance fees to be taxed at the reduced 7 percent VAT rate. Upon a tax audit, the tax office rejected the taxpayer’s application for the reduced rate, ruling that the events were parties, with the musical performers serving as ancillary incentives for guests to attend. The court overruled the tax office and allowed the reduced rates, explaining that admission fees ...