I'll soon start my second project supported by NLnet and the European Commission. For the first one I spent way too much time figuring out if I need to pay taxes on the funding I receive. At least value added tax does not apply! However, German tax law is not clear about income tax from what I can tell, and even writing a petition to the federal ministry of finance to clear things up still leaves me with most of the uncertainty. In any case, I did not need to pay income tax on the funding the first time around. Who knows if it will stay this way?
This is a companion discussion topic for the original entry at https://wordsmith.social/felix-ernst/how-to-not-pay-german-taxes-for-free-software-development-funded-by-the