Tax & Legal

The Supreme Tax Court has rejected claims that the local tourism taxes on overnight stays in Bremen and Hamburg are unconstitutional.

The Supreme Tax Court has held that an employee may deduct his accommodation and commuting costs while on secondment abroad from his employment income (if taxable) as travelling expenses.

The Supreme Tax Court has held that hotel meals provided as part of a package are ancillary to the main service of an hotel of providing accommodation. Full-board and half-board packages are therefore taxable as accommodation.

The Supreme Tax Court has held that the sale of a hotel voucher is subject to VAT as a prepayment on a domestic supply. This is adjusted later if the voucher is used to book foreign accommodation.

The Supreme Tax Court has disallowed an expense deduction up to the higher lump-sum amount for accommodation on business travel, where the employer bore the actual amount payable.