Tax treatment of graduation balls

The ball season is approaching again and it is often tradition for the senior classes to have a School Ball organize and with the proceeds from that, a portion of the Costs of the graduation trip deny. This year is the first ball season after the introduction of the Registration desk and ticket sales duty. In this context, the BMF recently one Information to tax treatment published by Maturaballen. It highlights the different tax consequences depending on the Organizational form entered.

The founding of a own club It is not optimal from a tax point of view to carry out the ball, as it involves funding the graduation ceremony or the graduation trip. no nonprofit purpose is being pursued and thus No tax benefits can be claimed. For example, if the ball is lost by Parental Association conducted (a parent association is usually one of the non-profit Association Therefore, it is important to ensure that the organization of the balls in the Statutes of the association is provided for (otherwise the loss of nonprofit status is threatened). Any potential profit must be used for non-profit purposes will be provided, with the financing of a High school trip for all high school graduates no non-profit purpose represents. A Support for needy students but it is possible as with other school events. If the ball is considered a tax-deductible expense, Big club festival, Thus, in principle, there is a action detrimental to the benefit before. Provided that the sales from the ball and any other activities detrimental to the promotion as a whole 40,000 € per year does not exceed, the remains Charity for the association obtain (at higher sales volumes, a Special permit to be applied for at the tax office). The prom then constitutes a fundamental VAT-taxable activity Profits exceeding the €10,000 exemption are subject to personal income tax. In the case of Bar receipts over €7,500 (and an annual turnover of over €15,000) therefore also Registration desk and ticket sales duty.

Alternatively, there is also the option to Organization and implementation one at a school ball People's Committee to transmit. For purposes of Income tax lies only one unique activity without the intention of repetition before, so that no source of income is given and no taxation takes place. Lack of sustainability also lies no entrepreneurial activity before and therefore also no VAT liability. This in turn also has the Advantage, that None Registration desk and ticket sales duty This arrangement via a committee of individuals is therefore a tax-efficient way to organize a graduation ball. However, questions should be addressed beforehand regarding the following: personal liability They are checked and, where possible, insured as well.

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