<p>Rooms rented out for prostitution in Germany do not qualify for a tax break granted to hotels, a federal court said today.<br /><br /></p>.<p>The full sales tax rate of 19 percent applies when rooms are used for commercial purposes, including sex work, the Federal Fiscal Court ruled from the southern city of Munich.<br /><br />The reduced tax rate for hotels is seven percent.<br /><br />"From the location of the building in a red-light district," the ruling said, "it is clear that the plaintiff did not keep the premises for accommodation, but for the practice of prostitution."<br /><br />The plaintiff, owner of the "Eros Center" in the western city of Duesseldorf, rented out 13 "erotic rooms" equipped with jacuzzis to prostitutes on a daily or weekly basis, according to court documents.<br /><br />The plaintiff argued the rooms were eligible for the tax break because they were not specifically designed for the provision of sexual services, but operated as regular hotel rooms.<br /><br />Germany legalised prostitution in 2001, where it is in theory subject to standard tax and employment laws.</p>
<p>Rooms rented out for prostitution in Germany do not qualify for a tax break granted to hotels, a federal court said today.<br /><br /></p>.<p>The full sales tax rate of 19 percent applies when rooms are used for commercial purposes, including sex work, the Federal Fiscal Court ruled from the southern city of Munich.<br /><br />The reduced tax rate for hotels is seven percent.<br /><br />"From the location of the building in a red-light district," the ruling said, "it is clear that the plaintiff did not keep the premises for accommodation, but for the practice of prostitution."<br /><br />The plaintiff, owner of the "Eros Center" in the western city of Duesseldorf, rented out 13 "erotic rooms" equipped with jacuzzis to prostitutes on a daily or weekly basis, according to court documents.<br /><br />The plaintiff argued the rooms were eligible for the tax break because they were not specifically designed for the provision of sexual services, but operated as regular hotel rooms.<br /><br />Germany legalised prostitution in 2001, where it is in theory subject to standard tax and employment laws.</p>