The terms grants and subsidies have long been integrated into various areas of everyday life. However, the specific content requirements for the concepts of grants or subsidies often remain unclear. The boundaries between gifts and reciprocal contracts frequently blur. This paper conducts a detailed analysis of the terms based on a uniform definition of grants, examining the different problem areas in income tax and value-added tax law. At the center of the income tax investigation is the investment grant and the related question of whether it can lead to a reduction in the acquisition or production costs of the subsidized asset. Additionally, the legality of the election right in the income tax guidelines is thoroughly addressed. In value-added tax law, particular attention is given to whether the criteria established by the European Court of Justice for distinguishing between a payment or an additional payment and 'real' grants are currently adequately considered by the Federal Fiscal Court.