Benefits to streamers are subject to VAT

Voluntary donations from viewers to a streamer are also part of the streamer's income subject to VAT from the provision of an entertainment service.

Streaming services offered by individuals via Twitch, YouTube and similar platforms have not only been very popular with audiences for years, but are also a secondary or even main source of income for more and more people. What usually starts out as a harmless hobby calls the tax office into action at the latest when significant income is generated. The income usually comes mainly from advertising revenue paid out by the platform operator. However, viewers can also voluntarily donate a sum of money to the streamer (so-called "donation"). The Düsseldorf Fiscal Court has now confirmed the opinion of the tax office that these donations are also VAT-liable remuneration that flows to the streamer as part of an exchange of services in return for the entertainment service that they offer.