Gross and net

Gross and net mean one thing on a fee and another on ticket income. On a percentage deal the difference can be worth thousands, so check which one a contract means each time it uses the word.

On the fee

“€2,000 net” means €2,000 plus VAT where it applies; “€2,000 gross” means VAT is included. Between businesses in different EU countries the invoice usually shows no VAT at all (reverse charge). Where fees to foreign artists are taxed at source, as in Austria or Germany, “net” is sometimes used for the amount after that tax. Ask which is meant.

On ticket income

Say a club in Vienna sells 500 tickets at €20. A club night where the music is the point is taxed at 13% in Austria (§ 10 Abs. 3 Z 6 lit. b UStG), so each ticket holds €2.30 VAT.

60% of gross is €6,000, 60% of net €5,100, 60% after costs €3,000. On the same night, the base alone moves the artist’s share by €3,000. The rate depends on the country and the night: 7% in Germany under the same condition, the standard rate where the music only frames the bar.

Write the base next to every percentage: of gross, of net, or after costs.

Booking fees that buyers pay on top usually aren’t part of the gross, because they go to the ticket platform. For free and reduced tickets, count what was actually paid.