Latest VAT News
Here, we regularly inform you about new court decisions and other newsworthy developments in VAT matters.
Practical guidance from the Federal Ministry of Finance (BMF) on e-invoicing
9 November 2026
On 15 October 2026, the BMF published a new circular on e-invoicing, in which it clarified further practical issues following consultation with various associations. The circulars from 2024 and 2025 remain valid. We summarise the key points here.
BMF circular letter on operating facilities
30 October 2026
In a circular letter dated 19 October 2026, the Federal Ministry of Finance (BMF) implements the case law of the European Court of Justice (ECJ) and the German Federal Fiscal Court (BFH) regarding the German principle of split-up in relation to operating facilities. Whilst the letter attempts to provide guidance through examples, the inevitable reference to the perspective of the average consumer leaves a considerable grey area.
Sale of a business to two purchasers
14 October 2026
The transfer of a business to two persons does not constitute a transfer of a totality of assets, even if both purchasers subsequently contribute their shares to an existing company, which then continues to operate the original business. This was decided by the General Court on 9 September 2026 in case T-366/25, D. B.
Additional services at the hotel
12 October 2026
Breakfast at the hotel is subject to the standard VAT rate. This was decided by the Federal Fiscal Court (BFH) in three judgements published on 1 October 2026 (V R 8/26, V R 10/26 and V R 11/26), thereby following the decisions of the European Court of Justice (ECJ) regarding the relevant German requests for a preliminary ruling. In the case of free parking, it depends on the circumstances.
Intermediary/trading for own account on online portals
An online car hire intermediary portal does not, in any event, provide a car hire service if it has not hired the vehicles itself. This was the ruling of the Federal Fiscal Court (BFH) in its judgement V R 17/24, published on 24 September 2026.
Restrictions on the sale of a business as a whole
16 September 2026
A Member State which exercises the option to regulate the non-taxable transfer of a business as a whole may not impose restrictions that go beyond those laid down in the VAT Directive. This was decided by the General Court on 2 September 2026, Case T-413/25.
TOMS on loss-making travel services
16 September 2026
Even so-called ‘coffee trips’, where transport is provided for a fee which does not cover costs because it is cross-subsidised by the sale of goods, are subject to the Tour Operators Margin Taxation (TOMS). Input VAT is not deductible. This was decided by the ECJ on 10 September 2026, C-565/24, P-GmbH & Co. KG.
Late filing surcharge in cases of tax refunds
1 September 2026
The tax office may also impose a late filing surcharge in cases of tax refunds if the tax return was submitted late. In exercising its discretion, the frequency of missed deadlines must also be taken into account. This was decided by the Federal Fiscal Court (BFH) on 7 May 2026 (published on 27 August 2026), V R 26/24.
No supplies in the case invoicing back and forth
31 August 2026
If a temporary employment agency covers the costs of discounted canteen meals for temporary staff at the client’s premises but immediately passes these costs on to the client, there is no exchange of supplies. This was decided by the Federal Fiscal Court (BFH) on 16 April 2026 (published on 13 August 2026), V R 1/25.
Automatic installations as fixed establishments
27 August 2026
There have been a number of ECJ rulings on the subject of a fixed establishment in recent years, but new questions continue to arise. The Federal Fiscal Court (BFH) has requested clarification on an increasingly relevant situation in which services are provided automatically by a technical installation (BFH ruling V R 12/24 of 7 May 2026).