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Hamburg Court Backs Lemonaid in Tax Case, Avoiding Multimillion-Euro Back Taxes

The ruling centers on whether payments to the affiliated charity qualify as deductible marketing costs.

Overview

  • The Fiscal Court of Hamburg ruled on November 13, 2025 (case 2 K 67/23), overturning the tax office’s assessment tied to Lemonaid’s social contributions.
  • Auditors had classified transfers to LemonAid & ChariTea e.V. as hidden profit distributions, while Lemonaid recorded them as operating expenses for sponsorship and brand marketing.
  • The tax office sought €650,000 for 2015–2017, and the company said an extension across years could have exceeded €4 million.
  • The judgment recognizes the expenses as deductible and grants input VAT entitlement, with the finance authority ordered to cover procedural costs.
  • Lemonaid plans special bottle labels reading “Amtlich was Fair-ändert” and a social media campaign, while portraying the decision as a signal for other social enterprises.