Taxable Additional Compensation for Past Copyrights Subject to Reduced VAT Rate – Commentary 29.07.2024 BFH

• Fairnessausgleich (fairness compensation) for previously granted copyright is subject to value-added tax
• Additional compensation for previously granted copyright based on reach is taxable at a reduced tax rate
• Section 32a of the Copyright Act (UrhG) establishes a fairness compensation obligation
• Disputes often arise over additional compensation to ensure fairness in exploitation revenues
• Legal cases, such as the one involving author Anika Decker and the films “Keinohrhasen” and “Zweiohrküken,” highlight the importance of fair compensation for copyright holders

Source: haufe.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.

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