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TAXES – INCOME TAX AND VALUE ADDED TAX

TAXES – INCOME TAX AND VALUE ADDED TAX

Taxes – both income tax and value added tax – cross the paths of all artists working internationally. One must consider complex but clearly differentiated regulations and procedures.

Example 1:
A director living in the UK receives €8000 for a production in Germany. The income tax must be paid to the British tax authorities. If, however, an actor/actress living in the UK is hired for this production, his/her payment is taxable in Germany. (see “Ausländersteuer”/foreigner tax)

Example 2:
A visual artist in Germany who is subject to value added tax sells a painting to a private individual in Denmark. The value added tax of 7 percent is incurred in Germany. If the buyer is a business, however, the value added tax must be paid in Denmark. (see VAT on foreign transactions)

Here you will find information about 

Income tax

“Ausländersteuer” (English: foreigner tax)
Classification of income according to the activities performed
Procedures and processes
Taxation of stipends and prize money 

Value added tax

value added tax basics
value added tax on international sales 
summary table of VAT liability

VISA AND RESIDENCE

VISA AND RESIDENCE

Questions regarding entry and stay are part of the nature of international artistic activities. Different residence titles such as visas, work permits, etc. are relevant for different countries.

The EU treaties guarantee the freedom of establishment and services and the freedom of movement for workers, which grant any EU citizen the right to live and work in another EU country.
German nationals are required to obtain visas for trips to many non-European countries; an appropriate residence title is necessary to be able to work there.

Artists who are not EU citizens need a valid residence title for entering and staying in Germany. The conditions are set out in the European and national laws, the EU Visa Code, the Convention implementing the Schengen Agreement, the Schengen Borders Code, and the Law on the Residence, Economic Activity and Integration of Foreigners in the Federal Territory (Aufenthaltsgesetz; English: Residence Act).

Example 1: 
An independent dance company based in Munich hires an Indian dancer, a French choreographer and an Irish musician on a fee basis. They will rehearse in Germany for two months and then go on a month-long tour through Germany, Switzerland, the UK, and Ireland. What visas or work permits do they need? (see visa types and application procedures)

Example 2:
An artist from Iraq is invited to Germany for a period of two weeks for setting up his/her exhibition pieces and participation in the subsequent opening of the exhibition. On the day following the opening, he/she gives a workshop as part of the exhibition, for which he/she receives a fee. (see market access to Germany and specific professional groups)

Here you will find information about

Travelling within the EU
Travelling beyond the EU borders
Official measures to avoid any difficulties 

TRANSPORT AND CUSTOMS

TRANSPORT AND CUSTOMS

The internationality of the cultural sector is not necessarily accompanied by a growing liberalization of border traffic. Although within the EU, the barriers to import and export goods have been reduced, the proper processing of necessary customs formalities for transports beyond EU borders is associated with quite a bit of an administrative burden. That it pays off to shoulder this burden often only becomes evident when difficulties arise: for example, if German customs holds goods during a return transport to Germany because the procedure for the returned goods was neglected before the transport.

Example 1: 
A theater company in Essen plans a tour through the Netherlands, Belgium, Luxembourg, and France. Two drivers are instructed to take a part of the stage décor, costumes, etc. to the individual venues using a rented truck. What has to be considered with respect to customs clearance, insurance and packaging issues? (see transport within the EU)

Example 2:
A co-operative gallery in Berlin agrees on a joint project with a gallery in Yerevan, Armenia. The galleries plan to organize two exhibitions: one of German artists in Yerevan and at a later time one of Armenian artists in Berlin. How will the works be transported to their respective destinations and which customs formalities must be taken into account? (see transport beyond EU borders)

Here you will find information about

transport within the EU
transport beyond EU borders
transit-related issues
issues regarding transport insurance
shipping and courier services
packaging and materials

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