- Supreme Tax Court decision on reduced VAT rate for supply of works of art
- Author of works of art must be the creator, not successor in title, for reduced VAT rate
- Case involved artist and gallery partnership claiming reduced VAT rate for sculptures
- Supreme Tax Court ruled only the creator is eligible for reduced VAT rate
- Legislation aims to privilege art supplies from artist or dealer at reduced tax rate
- Plaintiff did not meet requirements for reduced VAT rate as they were not the author or legal successor of the works
- Legal succession in this context refers to universal succession, not singular succession
- Copyright Act states author is the one who creates the work and copyright is inheritable but not transferable
Source: blogs.pwc.de
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
