Crematorium metal sales must be taxed, Germany’s top tax court rules

Revenue from selling metal remnants left after cremations counts as taxable business income, Germany’s Federal Fiscal Court ruled on Thursday, according to BR. The materials can include dental gold, jewellery and medical prostheses.

The case was brought by a city that sold metal remains from a crematorium to a metal recycling company. The city recorded the proceeds in a separate account so they could be used for charitable or social purposes.

The tax office responsible argued that the proceeds were business income subject to tax. The Federal Fiscal Court, Germany’s highest court for tax matters, agreed.

The court said business income includes all money or money-equivalent benefits generated through an operation. If remains from a crematorium are sold, the resulting proceeds qualify as business income, regardless of how the money is later used.

The city involved cannot be identified because of tax secrecy.