The state parliament by Schleswig-Holstein considered the possible VAT implications for fire brigade fêtes and other events organised by volunteers on 13 November 2026. The debate was prompted by a motion from the FDP parliamentary group, which fears additional tax and bureaucratic burdens. It wants the state government to push for exemptions and provide local authorities and volunteer fire brigades with practical guidance on how to apply tax law.
The background is a nationwide change: from 1 January 2027, public bodies will have to apply a provision of the VAT Act adopted back in 2015. It concerns when the public sector must pay VAT on services. According to the state parliament, one factor is whether a body engages in economic activity and competes with private companies. Mandatory application had been postponed several times.
This does not automatically determine whether VAT is due on a fête. According to the state parliament, the tax treatment depends on the event’s legal and organisational arrangements. The debate is particularly relevant to cases in which a local authority or one of its bodies sells food and drink. The term “bratwurst tax” does not refer to a separate type of tax; it is about the application of VAT.
In its motion, the FDP calls on the state government to push at federal and EU level for legally certain exemptions for low-value transactions and events organised by volunteers. The requested guidance is intended to explain existing reliefs and cover typical cases such as selling food and drink at fêtes. The parliamentary group leader Christopher Vogt warned during the debate on 13 November of additional work for local councils and fire brigade members.
Online State Fire Brigade Association sees bureaucratic consequences, according to a report by Norddeutscher Rundfunk. State Fire Chief Jörg Nero pointed out that purchases and sales would have to be documented and coordinated with local authority finance departments. The question is therefore not just whether tax will ultimately be payable, but also what checks and record-keeping will be required beforehand.
Finance Minister Silke Schneider had said, according to NDR, that the rules implement EU law and rulings by the Federal Fiscal Court . The state cannot change these foundations on its own. The finance ministry intends to collate the information and present it in an accessible form. The small business VAT scheme may apply to certain economic activities, according to the NDR report; the decisive factors are the local authority’s turnover and the statutory requirements.
Responsibility therefore extends beyond Kiel: the state parliament can call on the state government to push for changes. Such a call, however, changes neither federal law nor European law. For those responsible locally, what matters is who legally runs an event and which rules apply to the income in question.
Editor: Mira Cadena (Article created with AI assistance).