Latest VAT News - Forvis Mazars

Sale of a business where a tenant continues operations

17 April 2026

If the purchaser of a business does not use it, as the seller did, for their own business activities, but instead leases it out, the tenant cannot be relied upon to demonstrate the intention to continue the business as a prerequisite for the transfer of a totality of assets. This was decided by the Federal Fiscal Court on 13 November 2025 (V R 3/23, published on 19 March 2026).

BFH on the sale of solar power plants

17 April 2026

If the seller continues to operate the business himself without any changes, this does not constitute a transfer of a totality of assets even if ownership of all material parts of the business has been transferred. This was decided by the Federal Fiscal Court (BFH) on 13 November 2025 (published on 19 March 2026, V R 32/24).

Direct and immediate link in terms of input VAT deduction

13 April 2026

The fact that a purchase which serves to provide VAT-exempt healthcare services, but is also, by virtue of a statutory provision, a legal prerequisite for the provision of VAT taxable services, is not in itself sufficient to justify input VAT deduction. This was decided by the ECJ on 19 March 2026 in the Czech case of Oblastní nemocnice Kolín (C-513/24).

BFH: taxation of withdrawals/input VAT correction

10 April 2026

If the sporting activities of a sports club are transferred to a limited liability company (GmbH), there is no transaction which must be treated as made for consideration if the club makes a sports stand and floodlighting available to the GmbH free of charge. However, an input VAT correction must be made (BFH ruling of 6 November 2025, V R 36/23, published on 12 March 2026).

ECJ ruling on the standstill clause in cases of exclusion from input VAT deduction

23 March 2026

Exclusions from input VAT deduction not provided for in the VAT Directive are permissible even if the EU Member State concerned only enacted them upon accession to the EU, provided that there was no VAT system with input VAT deduction prior to accession. This was decided by the ECJ on 12 March 2026 in the case of Randstad España SLU (C-515/24).

ECJ: Loyalty points are not multi-purpose vouchers

20 March 2026

Loyalty points that customers can redeem on a subsequent purchase to receive an additional product are not multi-purpose vouchers. This was decided by the ECJ on 5 March 2026 in the Swedish case Lyko Operations AB (C-436/24).

ECJ ruling on input VAT deduction for intra-Community acquisitions

20 March 2026

In countries where an invoice is a prerequisite for input VAT deduction on intra-Community acquisitions, the input VAT deduction must be claimed for the period in which the invoice was received. This was decided by the ECJ on 12 March 2026 in the case of Aptiv Services Hungary Kft. (C-521/24).

ECJ on technical errors in the input VAT refund procedure

20 March 2026

The tax authority must notify the applicant if it is unable to open the input VAT refund application due to a technical error. This was decided by the ECJ on 12 March 2026 in the case of Harry et Associés Sarl (C-527/24).

ECJ on virtual currencies in online games

19 March 2026

Transactions involving the exchange of real currencies for a virtual currency in an online video game are not exempt from VAT as financial services. The units of virtual currency do not constitute vouchers either. This was decided by the ECJ on 5 March 2026 in the Lithuanian case Žaidimų valiuta (C-472/24).

Sports clubs: VAT on membership fees

10 March 2026

In its ruling of 13 November 2025, published on 26 February 2026 (V R 4/23), the Federal Fiscal Court (BFH) urged the Federal Ministry of Finance (BMF) to finally bring its administrative opinion on the taxability of membership fees into line with case law. The BFH also issued a request to the legislature. In the BFH's opinion, sports clubs must subject their membership fees to VAT.