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- Title
Umsatzsteuerrechtliche Einordnung von Online-Veranstaltungsleistungen und weiteren Online-Dienstleistungsangeboten – Finanzverwaltung schafft Klarheit.
- Authors
Moldan, Alexander
- Abstract
The Federal Ministry of Finance (BMF) has provided clarity on the VAT classification of online event services and other online service offerings in a letter dated April 29, 2024. A distinction is made between live streaming and pre-produced content. The BMF states that live streaming does not constitute an electronic service as it requires significant human involvement. Pre-produced content, on the other hand, is considered an electronic service. The place of supply for events in the fields of culture, art, science, education, sports, and entertainment is generally at the venue. The Federal Ministry of Finance has now clarified that the place of supply in the B2C sector is determined not by the registered office or venue, but by the residence, habitual residence, or place of establishment of the consumer. These regulations are set to come into effect on January 1, 2025. The Federal Ministry of Finance (BMF) has clarified that live streaming of cultural events is exempt from VAT if provided by a privileged institution. The BMF refers to the VAT exemption provision of § 4 No. 20 letter a of the German VAT Act (UStG). The Saxon Ministry of Finance had already commented on this issue and also confirmed the VAT exemption for live streaming of theater or orchestra performances. The BMF justifies its legal opinion by stating that live streaming offers of theater or orchestra performances involve interaction with the audience and take place in real time. In addition, a VAT exemption for live streaming offers can also apply in the health and education sectors if certain conditions are met. The Federal Ministry of Finance (BMF) does not grant a VAT exemption under § 4 No. 20 UStG for pre-produced content in the field of cultural events. The BMF also rejects a VAT exemption for the health and education sectors under § 4 No. 14 UStG or § 4 No. 21 and No. 22 letter b UStG. There is no explicit justification for these changes. It is being discussed whether pre-produced content can be classified as typical tax-exempt cultural services. The reduced tax rate according to § 12 para. 2 No. 7 letter a UStG could apply to live streaming offers. The provision of § 12 para. 2 No. 7 letter a UStG allows for a reduced taxation of admission tickets for theaters, concerts, museums, and similar cultural events, as well as services by performing artists. The tax administration has so far held the opinion that the tax rate benefit for services by performing artists requires an admission ticket. However, the Federal Fiscal Court has ruled that this only applies to theaters, concerts, and museums. The Federal Ministry of Finance has now adopted this legal opinion. Therefore, companies selling admission tickets must check whether they fall under case no. 1, while performing artists must check whether they fall under case no. 2. Both cases may be applicable to live streaming offers. The BMF has clarified that the tax reduction also applies to the sale of digital admission tickets for live streaming offers. However, a national extension of this regulation is still under discussion.
- Subjects
TAX administration &; procedure; TAX cuts; THEATER tickets; CULTURAL activities; ENTERTAINERS; BUSINESS to consumer transactions; VALUE-added tax; MUSEUM studies
- Publication
Umsatzsteuer-Rundschau, 2024, Vol 73, Issue 12, p437
- ISSN
0341-8669
- Publication type
Article
- DOI
10.9785/ur-2024-731201