The German Federal Tax Court (BFH) concluded that prize money from a television show is not subject to value added tax (VAT).
In the case before the BFH, an individual (an advertiser) participated in a television show in which the winner of the show—out of a total of 12 participants who moved into a house—won a prize as well as a weekly lump-sum for expenses and a flat-rate reimbursement for damages and wear and tear to clothes. The individual won the show and received the prize, in addition to a weekly lump-sum payment for seven weeks.
The tax authorities asserted that through his participation in the film production and the related granting of rights, the individual had rendered a taxable supply subject to VAT. A lower tax court upheld the claim of the individual and was confirmed by the BFH.
Other recent VAT developments that may affect businesses in Germany include the following items:
Read a March 2019 report [PDF 320 KB] prepared by the KPMG member firm in Germany
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