Latest VAT News
Here, we regularly inform you about new court decisions and other newsworthy developments in VAT matters.
Offset scheme for import VAT
20 July 2026
In some EU Member States, it is already possible to offset import VAT immediately against the corresponding input VAT deduction. The German fiscal administration are also currently discussing an offset scheme.
General Court on exemption for loan administration
16 July 2026
If a lender sells a loan to another financial institution but continues to manage it in return for payment, this service is not VAT-exempt. This was the ruling of the General Court on 17 June 2026 in the Finnish case A Oy, T-184/25.
VAT exemptions within a VAT group
2 July 2026
If a VAT exemption is linked to certain characteristics of the person rendering the supply, then within a VAT group the person rendering the supply must also possess that characteristic. This was decided by the ECJ on 10 June 2026 in the case of Fiscale Eenheid Stichting X c.s, C-444/25.
VAT owed because of VAT statement in the invoice
2 July 2026
Following a referral from the Federal Fiscal Court (BFH), the ECJ ruled in the XYRALITY case that a supply chain exists where an app store acts in its own name but on behalf of an app developer. The place of supply is determined by the app store’s place of establishment. The BFH (V R 46/25) has now referred the case back to the Finance Court.
Annual Tax Act 2026: New rules on VAT groups
3 June 2026
One thing stands out in the draft bill for the Annual Tax Act of 19 May 2026: the long-awaited comprehensive reform of VAT grouping. Does it live up to expectations?
ECJ rules on transfer pricing adjustments
2 June 2026
Where repair costs in the automotive sector are passed through within the distribution chain and transfer prices are adjusted based on those costs, this constitutes a repair service only if a respective legal relationship exists. This was the ruling of the ECJ on 13 May 2026 in the case of Stellantis, C-603/24.
Full interest does not contravene EU law
21 May 2026
The full accrual of interest on arrears under section 233a of the German Fiscal Code (AO) neither serves to implement EU law nor does it otherwise fall within its scope. It also complies with the principles of equivalence and effectiveness. This was decided by the Federal Fiscal Court (BFH) on 11 December 2025 (published on 7 May 2026), V R 7/24.
Reduction of the tax base upon assignment
13 May 2026
Where a claim arising from a supply subject to VAT is assigned, the assignee does not acquire the right to adjust their VAT if the claim becomes irrecoverable. This right remains with the assignor. This was decided by the General Court on 22 April 2026 (T-233/25).