French concert promoters are now eligible for tax credits of up to €500,000 per show, in a bid to stimulate investment in new talent
Sign up for IQ Index
The latest industry news to your inbox.
Tickets for live DJ performances will now be taxed at the same rate as other concerts following a new ruling by the Federal Fiscal Court
By IQ on 05 Nov 2020
Live performances by house and techno DJs have been officially recognised as ‘concerts’ by Germany’s Federal Fiscal Court, slashing the tax paid on live electronic music events to 7%.
Tickets for club nights were formerly levied at 19%, but are now eligible for the lower rate of sales tax after being redefined as “concert-like” events by the Bundesfinanzhof (BFH).
In a judgment dated 23 July, but published in late October, the BFH affirms that “the performance of techno and house music by various DJs give[s] an event the character of a concert, or a concert-like, event even if the music performances take place regularly (weekly),” according to Berlin-based legal firm Härting.
The majority of dance music shows were formerly recognised as ‘party’, rather than cultural, events.
“Most clubs should be able to benefit from the application of the lower tax rate”
The reclassification for clubs throughout Germany follows a similar move specifically for Berlin’s Berghain in 2016, which was recognised as organising culture events and so eligible for the 7% rate of tax.
For nightclubs to benefit from the new tax rules, DJ performances must be the main purpose of the event (as opposed to dancing, partying and drinks sales), according to Härting.
“Even if these requirements have to be checked on a case-by-case basis, most clubs should be able to benefit from the application of the lower tax rate,” the firm says.
All venues and bars in Germany are currently closed under a nationwide lockdown set to run until the end of November.
Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.