Latest VAT News
Here, we regularly inform you about new court decisions and other newsworthy developments in VAT matters.
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).
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 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.