VAT Treatment of Dinner Show: BFH Resolution on Complex Supply and Reduced Rate

• BFH resolution regarding VAT on a dinner show within specific time limits
• Lower Tax Court recognized the dinner show as a single complex supply
• Elements of a single complex supply must be viewed as equivalent
• Reduced VAT rate applies to both elements of the single complex supply in this case
• BFH rejected tax authorities’ complaints regarding the Lower Tax Court’s ruling
• Previous BFH rulings on dinner shows subjected transactions to standard VAT rate as a complex supply
• Leipzig tax court chose an unintended legal loophole to justify reduced tax rate for complex service
• BFH dismissed FA’s appeal against denial of leave to appeal without providing reasoning
• It would have been important to know the legal basis for the conclusion that the complex supply is subject to the reduced tax rate.

Source: assets.kpmg.com

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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