The highest financial court in Germany has ruled that dance music parties merit the same tax breaks as concerts, as RA reports.
The momentous decision means that clubs across Germany can now pay seven percent VAT on entrance fees instead of 19, which has been the standard rate since 2009. The case reached the federal fiscal court, known locally as Bundesfinanzhof, after Berlin club Berghain and an event in Saxony won cases in their local courts, Süddeutsche Zeitung reports.
The ruling hinged on whether events at clubs can be considered concerts, which are “culture,” or parties, which are “entertainment.” The Bundesfinanzhof chose the former, so long as “the musical performances represent the actual purpose of the event from the perspective of an ‘average visitor.'” This suggests that only clubs with curated programmes are eligible for the reduced rate.