Tax & Legal

The finance ministry has amended its VAT Implementation Decree to the effect that a charity is deemed to perform a service if it grants a sponsor an explicit right to propagate the sponsorship in his own advertising.

The finance ministry has decreed that sponsorship payments are not consideration for services rendered if the only benefit to the sponsor is the mention of his name.

The Supreme Tax Court has held a foreign motor racing team to be taxable on its receipts from a German sponsor in relationship to its participation in German events.