Latest VAT News
Here, we regularly inform you about new court decisions and other newsworthy developments in VAT matters.
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).
BFH zu Beratungsleistungen für Schadensersatz
19 August 2026
Even if the intended turnover is not realised, consultancy expenses to claim damages in connection with the intended turnover entitle the taxable person to claim input VAT deduction. This was decided by the Federal Fiscal Court (BFH) on 7 May 2026 (published on 30 July 2026), V R 15/24.
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?