Liquor License for Associations: Everything You Need to Know

Bar licence for the club

The serving of alcoholic drinks is often important for clubs in order to flush more money into the club's coffers. However, a liquor licence is required for parties and celebrations that take place in public. You can find out how to obtain a liquor licence for your club in this article.

spized | Club management

March 11, 2025 |

Whats’ on this page

1. Definition: What is a liquor licence?

2. Conditions of the liquor licence for clubs

3. What does the liquor licence for my club cost?

4. What is a restaurant licence?

4.1 The difference between a restaurant licence and a liquor licence

5. How long is the liquor licence valid for?

6. Can a club sell food?

7. How the proceeds from the sale of food and drink are taxed

8. The most important things at a glance: How does the bar licence for the club work?

Definition: What is a liquor licence?

The liquor licence is defined in § 2 of the Restaurant Act: All clubs require a licence to serve alcoholic beverages. This also applies to clubs that do not have legal capacity. The meaning of the term ‘liquor licence’ is unclear to many clubs. Because club organisations try to improve the club's finances by selling food and drinks, the liquor licence is important. If the serving takes place on the club's own premises, a serving licence is not required.

If the club organises public events such as tournaments or town festivals and serves alcohol where people from outside the club usually have access, a liquor licence is essential. If your club organises a summer party or a Christmas party outside the club restaurant, a liquor licence is also required. Either way, the conditions for obtaining a liquor licence should be clear to clubs in order to avoid potential problems with the authorities.

By the way: If only club members have access to the premises, a liquor licence is not required for events. This also applies to celebrations where an external room is booked outside the club premises.

Conditions of the liquor licence for clubs

The necessary forms can usually be found at the relevant public order office. These can often be downloaded from the homepages. In addition to the form, the office requires further information such as the location of the event. The exact starting point and the destination or purpose of the celebration must also be stated. The public order office then makes a decision on the club's liquor licence. The organisation may have to submit a list of all the food and drink on offer. This is relevant for determining whether a liquor licence is required.

What does the liquor licence for my club cost?

The cost of the liquor licence depends on the size of the event. In addition, each municipality has different prices for the liquor licence. Accordingly, the costs for the liquor licence range between 20 and 200 euros. At the event, make sure that you offer non-alcoholic drinks as well as alcoholic drinks. Otherwise there may be surcharges in some municipalities. A so-called catering licence is required for permanent approval to serve alcohol in the club's own restaurant. Applying for a pub licence is somewhat more complex.

Note: Bypassing the liquor licence is not a good idea for the club. Failure to comply with the German Catering Act is an administrative offence that can be punished with a fine of up to 5,000 euros. Such a fine is a real worst-case scenario for the financially strapped clubs.

What is a restaurant licence?

The restaurant licence or restaurant concept regulates who is permitted to sell food and drinks for immediate consumption in connection with the German Restaurant Act. This applies to all persons or organisations that run a pub, bar or restaurant. By law, anyone who maintains a catering business

serves drinks for consumption on the spot,
serves prepared food on the premises and
grants access to all or certain groups of persons.

Anyone operating a catering business requires a permit from the relevant public order office. The association therefore requires a catering licence if

alcoholic beverages,
a general intention to make a profit and
food and drinks are sold to everyone or certain persons (club members).

Note: Even if the restaurant is only intended for club members, a corresponding restaurant licence is required.

The club restaurant is a taxable business operation, even if the income is used for charitable purposes. Any economic benefit that is realised from the club restaurant is considered a profit by the tax office. Accordingly, the operation of a club restaurant automatically constitutes an intention to make a profit.

The difference between a restaurant licence and a liquor licence

The liquor licence can be obtained for a limited period of time (e.g. summer party or Christmas party), while the pub licence is a permanent permit. A liquor licence is always required if alcoholic beverages are sold to non-club members in public areas with the intention of making a profit. If the event is only intended for club members (also outside the club premises), no liquor licence is required.

How long is the liquor licence valid for?

It is possible to apply for a bar licence for a one-off event. This is usually uncomplicated and only requires a lead time of 2-3 weeks. In this case, the liquor licence is only valid for the one-off event. If you want to serve alcohol in your clubhouse on a permanent basis, a permanently valid liquor licence is required. The issued catering licence then allows you to serve alcoholic drinks in the club restaurant. The catering licence is particularly necessary if people from outside the club can buy food and drinks.

Can a club sell food?

The question of whether a club is allowed to sell food and drink often concerns small sales stands that are set up for summer festivals or tournaments. This often includes the sale of coffee, cakes, sandwiches and other snacks to top up the club's coffers. A catering licence is required as soon as freshly prepared food (e.g. waffles) or alcoholic drinks are sold. Even if the club event only takes place once a year. If the club regularly holds sporting events, it is advisable to have a permanently valid licence.

Of course, the club must also comply with hygiene regulations. For example, perishable food and drinks must be refrigerated. The exact regulations vary from region to region, which is why you should check with your local authority in advance.

How the proceeds from the sale of food and drink are taxed

By law, the sale of food and drink is not classed as a non-profit sports or club event. This means that the proceeds from food and drink constitute taxable income from business operations. This also applies if you use the profit for charitable purposes, i.e. for your own club.

Food and drinks sold to take away are subject to 7% value added tax (VAT). Consumption on site, on the other hand, is subject to 19% VAT. This does not apply to milk and dairy products, which are always taxed at 7%.