Germany‘s federal fiscal court BFH has declared that techno is music, and as a result, has announced that the country’s nightclubs will receive a tax cut on its ticket fees.
As the world continues its pandemic-related lockdown, which has subsequently put a big strain on nightclubs, institutions, and the music industry, many venues are struggling to look towards a future where they’ll open once again. Nightclubs in Germany — such as the legendary Berghain, KitKat, Sage, or Tresor — pay a fixed rate of 19 percent VAT on ticket sales, however, this is all set to change thanks to a new ruling that associates nightclubs with other music events, such as concerts.
In Germany, concert venues only have to pay 7 percent VAT on ticket sales, and as of now, so will nightclubs. The decision was made when the court weighed up the differences, noting that the average customer was, at their core, there for the music or DJ which makes it similar to a usual concert.
With this in mind, it offers nightclubs and their fans a slither of hope that one day they’ll re-open again, and when they do, that more money will go to the DJs and nightclub organizers which, in turn, should help them recover from the COVID-19 shutdowns.
As the German news outlet The Local de reports, the court judge said “They [DJs] perform their own new pieces of music using instruments in the broader sense, to create new sound sequences that have their own character.”
In other news, Ticketmaster’s concerts will only be open to those who have negative COVID-19 results and have been vaccinated.