In its decision of Sept. 1, the European Commission approved a provision in the German Film Subsidy Act (Filmförderungsgesetz, FFG) imposing the German film levy on VOD providers outside of Germany. The provision (Sec. 66a para. 2, sentence 2, of the current FFG) extends the obligation to pay a certain percentage of proceeds – as imposed on German-based film exploiters such as cinemas, broadcasters, DVD distributors, and VOD providers – to foreign VOD providers offering services to German customers. While the current FFG has been in effect since 2014, the provision was not officially applied due to the Commission investigating a possible violation of single market rules. It is currently under review if the Federal Film Board (FFA) will start collecting the levy from such VOD providers retroactively from January 2014. Once the collection of the levy from foreign VOD providers (on the basis of 1.8 –2.3 percent of their net proceeds derived from business with customers in Germany) is up and running, the new contributors will then be eligible for FFG funding for the production of theatrical films.
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German Film Subsidy Act: European Commission Approves Collection of Film Levy also from Foreign VOD Providers
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