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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