Geoblocking, Geoblocking-Verordnung

Follow up: Tax Authorities’ About-turn: No Withholding Tax Obligation on Fees for Online Advertising

No additional tax burdens for domestic advertisers

The Bavarian finance minister, Albert Füracker, from the state’s Ministry of Finance and Home Affairs stated: „At Bavaria’s instigation, it has been possible to reach clarification on a national federal level. It is now finally clear that domestic companies do not have to withhold tax on online advertising.“ One of the justifications for this is […]
Geoblocking, Geoblocking-Verordnung

Some German Tax Auditors Apply Withholding Tax on Fees for Online Advertising

A recent tax audit trend in Germany has the potential to significantly impact the tax position of both German companies which use online advertising and nonresident companies offering online advertising services in Germany.

Alarming audit trend in Germany German tax auditors have recently started to treat payments made by German companies to nonresidents offering online advertising services as royalties. In the auditors’ view, cross-border payments are made for the use of undisclosed know-how in the form of advertising algorithms. Although the auditors justify this practice by the application […]
,