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