Flat-rate taxation of the provision of VIP boxes

The pro rata expenses for empty seats are not to be taken into account in the flat-rate taxation of the provision of box seats.

The free provision of seats in a VIP box to business partners and employees is a benefit in kind that can be taxed at a flat rate. The Federal Fiscal Court has confirmed this common practice, but clarified that the object of the benefit in kind is the provision of the individual box seat. Expenses incurred for empty seats or unattended events for the box are therefore not to be taken into account for flat-rate taxation, nor are the costs of a seat for an employee who is present at the event solely to look after the guests. The expenses for the seats provided can be determined by means of an appropriate estimate. The same applies to the non-taxable advertising portion that is attributable to the provision of the box seat.