Latest VAT News
Here, we regularly inform you about new court decisions and other newsworthy developments in VAT matters.
BMF publishes new draft Circular on e-invoicing
26 August 2025
With this draft, the German Federal Ministry of Finance (BMF) intends to implement in the VAT Application Decree the guidelines set out in its Circular of 15 October 2024, also introducing a number of amendments. Please note that further changes may be made before the draft is finalised. The final version is expected in the fourth quarter of 2025, and associations currently have the opportunity to submit comments.
ECJ on unintentional export supplies
26 August 2025
VAT law is based on objective circumstances, not on intentions or formalities. This was confirmed by the ECJ on 1 August 2025 in case C-602/24, in which a sale planned as an intra-Community supply inadvertently turned into an export.
Federal Fiscal Court on the insolvency of a paying agent
8 August 2025
If the supplier assigns its claim for remuneration to a paying agent who successfully collects the claim, the supplier cannot claim a and debt relief if the agreed distribution to the supplier by the paying agent fails due to insolvency. This was decided by the Federal Fiscal Court (BFH) on 30 April 2025, XI R 15/22.
VAT Committee on single-purpose vouchers in distribution chains
8 August 2025
In the PlayStation case, the ECJ set a precedent for the treatment of single-purpose vouchers in distribution chains, but left one key question unanswered. In its guidelines from its 125th meeting, the members of the VAT Committee have now agreed almost unanimously on a course of action.
BFH ruling on the apportionment method for economy menus
26 June 2025
On 5 June 2025, the BFH (German Federal Fiscal Court) published two rulings dated 22 January 2025 on the permissible apportionment method for economy menus. The implications for system catering are unfavourable.
No input VAT deduction from EDI invoices
26 June 2025
On 30 May 2025 (V B 61/23), the BFH (German Federal Fiscal Court) ruled on a very, very old case in which an EDI invoice from 1999 was to be retroactively corrected by a paper invoice.
VAT liability of the protective mask lump sum
26 June 2025
The coronavirus pandemic may be over, but its after-effects are keeping even the tax courts busy: On 5 June 2025, the Federal Fiscal Court (BFH) published a ruling (V R 24/23) dated 6 February 2025 on the VAT treatment of the free distribution of protective masks.
EU plans to amend the Import One-Stop Shop
16 June 2025
Since 1 July 2020, the Import-One-Stop-Shop (iOSS) has been available to companies that supply private end consumers (and certain equivalent persons) from third countries, allowing them to import parcels into the EU free of import VAT under certain conditions. VAT can be reported centrally. This regulation is now to be improved.
Wood chip drying is not taxable, but foils input VAT deduction
16 June 2025
The feed-in of electricity from a combined heat and power plant entitles the operator to a CHP bonus. The plaintiff in the BFH case XI R 4/23 (published on 30 May 2025) also used the heat to dry wood chips free of charge. The BFH had to clarify whether the plaintiff had to pay VAT on a transaction deemed to be made for consideration and how this activity affected the input VAT deduction.
BFH: Management of the assets of a trust foundation is taxable
20 May 2025
Unlike a foundation under civil law, a trust foundation does not have legal capacity. This raised the question of whether a trust foundation can be the recipient of benefits. According to the BFH (V R 13/22 of 5 December 2024, published on 8 May 2025), however, this is not the issue at all, as the recipient of the benefit is not the foundation, but the founder.