Latest VAT News
Here, we regularly inform you about new court decisions and other newsworthy developments in VAT matters.
BMF circular on e-invoicing
28 November 2025
Exactly one year after its circular dated 15 October 2024, the BMF (Federal Ministry of Finance) has published another circular on e-invoicing. It incorporates the new legal regulations that have been in force since 1 January 2025 into the German VAT Implementation Regulations, supplements the previous version on a number of points and focuses on technical validation.
Scientific and educational events
24 November 2025
On 24 October 2025, the Federal Ministry of Finance (BMF) published an information sheet intended to inform businesses about the criteria for VAT exemption for lectures, courses and other scientific or educational events in accordance with § 4 No. 22 letter a of the German VAT Act (UStG).
Current legislative initiatives relating to VAT
6 October 2025
The German government, no longer so new, is attempting to stimulate the economy with tax measures. The draft bill for a Tax Amendment Act 2025, dated 4 September 2025, and the government draft bill for a law on modernising and digitising the fight against undeclared labour, also provide for changes to VAT.
ECJ rules on the Arcomet case concerning transfer pricing adjustments
6 October 2025
In the Arcomet Towercranes case (C-726/23), the ECJ ruled on 4 September 2025 that a transfer pricing adjustment can constitute a retrospective increase of the taxable amount. However, the decision cannot be generalised.
Soziale Einrichtungen, Persönliches Budget und Steuerfreiheit
6 October 2025
Mit seinem Urteil vom 30. April 20025, veröffentlicht am 18. September 2025 (XI R 25/24), entschied der BFH abermals zu den Auswirkungen eines sog. persönlichen Budgets auf die Steuerfreiheit von Leistungen von sozialen Einrichtungen.
Sudoku books qualify for reduced VAT rate
9 September 2025
On 1 August 2025, the ECJ ruled in Keesing Deutschland GmbH (C-375/24) that books containing sudoku number games also fall under CN heading 4902 and are therefore subject to a reduced rate of VAT in Germany, even though they do not contain any qualifying text.
Second ECJ judgement on indoor playground
3 September 2025
On 8 December 2022 (C-378/21), the ECJ ruled that VAT amounts stated incorrectly are not owed if there is no risk of loss of tax revenue due to the fact that the supply was made exclusively to final consumers. The ECJ has now clarified outstanding questions in its decision on a second reference in the same matter (C-794/23 of 1 August 2025).
BMF introduces partial revision of rules governing online events
3 September 2025
The German Federal Ministry of Finance (BMF) was heavily criticised for its Circular of 29 April 2024 relating to online events, and has now partially backtracked in a new Circular dated 8 August 2025. This creates difficulties for those who had painstakingly adapted to the previous set of rules.
Federal Fiscal Court on § 14c: Tax in the event of conflicting details
29 August 2025
Stating VAT on an invoice entails payment liability – as regulated by § 14c of the German VAT Act (UStG), corresponding to Art. 203 of the VAT Directive. The Federal Fiscal Court (BFH) decision XI R 4/22 of 19 March 2025, published on 14 August 2025, shows how easily taxable persons can fall into this trap
ECJ on input VAT denial and statutory liability
26 August 2025
The ECJ has always denied all rights to anyone who participates in tax fraud – and rightly so. In its decision of 10 July 2025 (C-276/24), it approves a combination of input tax denial and statutory liability, which ultimately leads to double taxation.