- A court ruling on November 13, 2024, addressed the exchange of services by a fitness studio during lockdown.
- The ruling confirmed that a reduction in the tax base under the German VAT law occurs only when the payment is actually refunded, not just when a refund claim exists.
- Allowing continued use of a fitness studio after the original contract term as free additional months is considered a taxable benefit, even without a civil law agreement, due to the economic link between prepaid membership fees and the benefit received during lockdown.
- The Federal Fiscal Court overturned the Hamburg Finance Court’s decision and dismissed the plaintiff’s case.
- The plaintiff, who operated a fitness studio in Schleswig-Holstein, was responsible for the costs of the entire legal process.
- The fitness studio was closed from March 17 to May 17, 2020, due to COVID-19 regulations, and offered free alternatives and extensions to memberships during this period.
Source: bundesfinanzhof.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.
Latest Posts in "Germany"
- Tax-Free Status for Insurance Contract Tariff Optimization Without Changing Insurer Confirmed by BFH Ruling
- BMF Issues Final Guidance on E-Invoice Error Categories and Validation Requirements
- No VAT Exemption for Treatments by Non-Accredited Private Hospitals, Rules Federal Fiscal Court
- Germany Updates E-Invoicing FAQs: Key Clarifications on Scope, Exemptions, and Transition Periods
- BFH Limits Personal VAT Liability of Insolvent Debtors to Insolvency Estate, Not Private Assets
