Latest VAT News
Here, we regularly inform you about new court decisions and other newsworthy developments in VAT matters.
Provision of company cars for private use - ECJ-ruling "QM" (C-288/19)
In its judgement in the "QM"-case dated 20 January 2021 (C-288/19), the ECJ has rejected the previous VAT taxation of the provision of cars to employees for personal use, insofar as the employee does not have to pay for the personal use. This opens up new options in cross-border cases.
Taxation of travel services according to Sec. 25 German VAT Code - BMF circular letter dated 29 March 2021
According to a circular letter from Germany’s Federal Ministry of Finance (BMF), dated 29 March 2021, the special provision of Section 25 of the German VAT Code will no longer apply to travel services provided by companies having their registered office in a third country and without a permanent establishment in the EU as of 1 January 2022. This decision is surprising because it has no basis in the wording of Section 25 of the German VAT Code.
Partnerships as integrated companies - ECJ-ruling "M-GmbH" (C-868/19)
The fact that partnerships generally qualify as integrated companies of a VAT group under Section 2 (2) No. 2 of the German VAT Code is no longer in dispute since the ECJ (European Court of Justice) ruling in the Larentia + Minerva and Marenave cases. However, the two VAT senates of the BFH (Germany’s Federal Court of Finance) have so far disagreed on whether this applies unconditionally. This dispute has now been decided by the ECJ in the"M-GmbH"-case (C-931/19)