No Contribution Obligation to the Künstlersozialkasse When the EUR 450 Threshold Is Exceeded

A one-off commissioning of an artistic or journalistic service that exceeds the statutory EUR 450 threshold (§ 24 Abs. 3 KSVG) does not automatically trigger a contribution obligation to the Künstlersozialkasse (German Artists' Social Insurance Fund). The Bundessozialgericht (Federal Social Court) ruled in favour of a Rechtsanwalt (German Attorney-at-Law) who had commissioned a web designer on a one-off basis to create a law firm website.

The claimant (Rechtsanwalt) had previously filed an objection against the notice issued by Deutsche Rentenversicherung Nord, which had demanded an artists' social insurance contribution on the fee of EUR 1,750 paid to the web designer. In the view of Deutsche Rentenversicherung Nord, § 24 Abs. 3 KSVG applied in the case at hand. Under this provision, a "not merely occasional commission" exists where the total of the fees exceeds the EUR 450 threshold. In the Rechtsanwalt's view, a single commission ruled out the term "occasional" within the meaning of § 24 Abs. 2 and Abs. 3 KSVG. Furthermore, it was irrelevant whether the EUR 450 threshold was exceeded in connection with this single event. The Rechtsanwalt did not place any further artistic or journalistic commissions during the audit period (four years).

Ruling of the Sozialgericht Hamburg and the Landessozialgericht Hamburg

The Sozialgericht Hamburg (Hamburg Social Court) and the Landessozialgericht Hamburg (Hamburg Higher Social Court) ruled in favour of the Rechtsanwalt and set aside the notice issued by Deutsche Rentenversicherung Nord. In the view of the courts, merely exceeding the EUR 450 threshold under § 24 Abs. 3 KSVG did not necessarily give rise to a contribution obligation to the Künstlersozialkasse. More important is the term "occasional", which the Duden dictionary defines using the synonyms "sometimes", "now and then", and "from time to time". According to the Landessozialgericht Hamburg, the term "occasional" is therefore not satisfied in the case of a single commission. Whether the EUR 450 threshold is exceeded is of secondary importance.

Ruling of the Bundessozialgericht

The Bundessozialgericht concurred with the LSG Hamburg's ruling in its decision. Companies are not subject to the artists' social insurance contribution if the total fees paid to self-employed artists and journalists do not exceed the EUR 450 threshold. Conversely, however, this does not mean that a contribution obligation automatically arises once this threshold is exceeded. Rather, the decisive question is whether the exploitation of artistic services takes place with a certain regularity and continuity, which would justify treating the company in the same way as the typical professional providers under § 24 Abs. 1 KSVG. In the view of the BSG, this is not the case where there is only a single commission.

Not Applicable to Typical Providers

The rulings of the LSG Hamburg and the Bundessozialgericht do not, however, apply to the typical provider companies referred to in § 24 Abs. 1 KSVG. For the companies listed in the statute, it is irrelevant whether commissions are issued only "occasionally".