Domain as bonus

Thursday, February 15, 2007 at 17:05 | Posted in Germany, internet, Legal | Leave a comment

RA-Blog writes that the Federal Finance Court (Bundesfinanzhof) in Germany has ruled that the cost of a  web domain transfer is not deductable as business expenses of the company buying the domain. A company bought a domain in 2000 for 7500 then German marks plus a VAT of 1200 marks. The Federal Finance Court says that the VAT is deductable but the 7500 marks is to be considered as the company’s profit.

Could this have any consequence in the domain market? Probably so. From now on you will not buy a domain. You pay for web consulting services whereby a free domain is included as a bonus.


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