Trade tax? Not for art
Ruling: Tattoo artist does not have to pay trade tax
Tattoo artists are entrepreneurs, but are they automatically liable for trade tax? Not necessarily. The Düsseldorf Tax Court has ruled that a tattoo artist can also work as a freelance artist, with the pleasing result: no trade tax.
The case: From business registration to artistic self-employment
A tattoo artist had been active for years and had originally registered his business in the traditional way. He later deregistered it again – stating that he was now “self-employed”. The tax office took a different view: for the authorities, it remained a commercial enterprise, including a trade tax assessment.
But the tattoo artist went to court, with success. The Düsseldorf Fiscal Court (judgment of 18.2.2025, ref. 4 K 1875/23 G, AO) clarified: The activity can certainly be of an artistic nature – and therefore not subject to trade tax.
What is art – and what is craft?
The tax judges referred to the established case law of the Federal Fiscal Court. According to this, there are two types of artistic activity:
- Non-purposeful art exists if the works serve solely to achieve an aesthetic effect. A particular artistic quality does not have to be proven in detail – it is sufficient if the work is generally considered to be “artistic”.
- Commercial art, on the other hand, is subject to stricter requirements. It is not enough for a work to be visually appealing. In order for an activity in the field of commercial art to be recognized as artistic, the person must be creatively active.
This means:
An individual approach and a special creative power must be recognizable. In addition, the work must reach a certain level of design, i.e. go beyond the usual craftsmanship.
The plaintiff’s tattoo was not used commercially and has no practical utility value. It was used solely for aesthetic purposes and was therefore non-purposeful art. Result: freelance activity.
What this means for tattoo artists (and similar professions)
-
Freelance instead of commercial: Anyone who understands and practices tattoos as a form of artistic expression can be considered a freelancer under certain circumstances.
-
No trade tax: If the activity is artistic, there is no trade tax liability.
-
Case-by-case assessment is decisive: Whether a tattoo artist is recognized as an artist depends on the individual nature of the activity.
Our tip for creatives
Tattoo artists, designers and other creative self-employed people should check (or have checked) whether their work falls under freelance artistic activity. This not only saves bureaucracy, but also saves money on trade tax.
Are you unsure? Get your first aid!
Are you at a loss with your request? Not sure whether you are using the right document or how to proceed?
Then book your individual first aid consultation with our legal experts.
Personal. Clear. To the point.
- Answers to your specific questions
- Practical, understandable, without legalese
- Book quickly – with your preferred date
Law doesn’t have to be complicated – just explained correctly.
