On October 29, a German court has finally ruled that Techno is a genre of music, meaning that clubs from now on will get a tax break on Ticket sales. The decision was made at Germany's financial high court and will mean that clubs will enjoy lower tax rates going forwards. Nightclubs in Germany, before, paid 19% VAT on ticket sales while traditional music venues only paid 7%.
The court ruled:
“DJs do not simply play sound carriers (composed by others), but they perform their own pieces of music using instruments in the broadest sense, to create sound sequences with their own character.”
The tax cuts are determined by whether the "average visitor" to the event is there for the music.
Entrance fees for techno and house concerts are tax-reduced in accordance with Section 12 (2) No. 7 (a) UStG if these music performances represent the actual purpose of the event and the additional services are of such minor importance that they reflect the character of the music performance not affect.
The performance of techno and house music by various DJs can give an event the character of a concert or a concert-like event even if the music performances take place regularly (weekly) (continuation of the BFH judgment of August 18, 2005 – VR 50/04 , BFHE 211, 557, BStBl II 2006, 101).
Turntables, mixing consoes and CD players now also count as instruments, as long as they are: "used to perform the piece of music and not just to play a sound carrier" The judges decided that this was the case in both cases.
In a roundabout way, the German Federals Finance Court states: Techno is music and the DJ is a Musician. Great news for all you Techno fans out there.