On 10 September 2026, the BFH decided (IX R 29/24) that revenues generated from the recycling of metallic residues (e.g., gold, titanium) from cremation processes constitute operating income (Betriebseinnahmen) for crematoriums. The court held that the systematic recovery and sale of these metals is an integral part of the crematorium’s business operations, not a incidental by-product, and thus fully taxable as business income.
Key Takeaways
- Business Income Classification: Metal recycling revenues are classified as regular operating income, subject to standard corporate and trade tax.
- No Incidental Income Exception: The court rejected the argument that metal recovery is merely a by-product of the primary cremation service.
- Implications for Crematorium Operators: Operators must ensure proper accounting and VAT treatment of metal recycling proceeds, increasing compliance requirements.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement