Unfair Gaps🇩🇪 Germany

Personal Care Services Business Guide

2Documented Cases
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All 2 Documented Cases

Rückerstattungspflicht-Nicht-Einhaltung bei Kündigungsfallzahlungen

€15–€25 per disputed charge + 100% fee reversal. Estimated 8–15% of no-show fees disputed annually. Example: 50 no-shows/month × €50 avg fee × 12% chargeback rate = €3,600/year lost revenue + €450–€750 chargeback fees = €4,050–€4,350 annual loss per location

Search results [4] and [5] reveal German/EU-mandated cancellation refund tiers: (1) Cancellation 7+ days before service = minimal retention (10–20%); (2) Cancellation 1–7 days = 90% retention permitted; (3) No-show = 95% retention permitted. Personal care services applying flat 100% non-refundable policies without customer proof-of-damages provision violate §§ 309, 308 BGB (unfair contract terms) and EU Directive 2015/2302 (unfair terms). Customers dispute via chargeback, resulting in: (a) Fee reversal (100% refund to customer), (b) Chargeback fee (€15–€25 per transaction per [4]), (c) Chargeback ratio penalty (merchant account downgrade or termination if >1% rate).

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Umsatzsteuer-Klassifizierungsrisiko bei Stornound No-Show-Gebühren

€5,000–€50,000 per Betriebsprüfung (audit); estimated €500–€2,000/month in cumulative underpayment if 50+ no-shows/month and 27% VAT misclassification

Personal care service providers (salons, fitness studios, wellness) charge no-show and cancellation fees without proper VAT documentation. German tax authorities (per KPMG analysis and German VAT Guidelines § 1.3, § 25.1 No. 14) treat these fees inconsistently: (1) No-show charges are GENERALLY subject to 27% VAT if the service remains contractually available. (2) Cancellation charges are classified as either non-taxable compensation OR taxable services depending on whether the contract was actively cancelled. (3) Direct link between acceptance of cancellation and consideration triggers VAT at 27%. Without documented evidence of contract status and cancellation process, auditors default to the higher-tax interpretation, resulting in back-tax liabilities plus penalties of 5–10% of unpaid VAT.

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