Latest VAT News
Here, we regularly inform you about new court decisions and other newsworthy developments in VAT matters.
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.
Energy sector: Adaptation of the guidelines to the jurisdiction
25 April 2025
In its letter dated 31 March 2025, the Federal Ministry of Finance changes the administrative opinion on the VAT treatment of some significant transactions in the energy sector and adapts to the recent case law of the Federal Fiscal Court. We summarise the most important points.
Coalition agreement: Reduced VAT rate in the gastronomy sector
10 April 2025
The German parties CDU, CSU and SPD have agreed that the VAT rate for food in the gastronomy sector will be permanently reduced to 7% from 1 January 2026. We summarise what needs to be considered here.
ECJ on the sale of private property by spouses
In its ruling of 3 April 2025 (C-213/24), the ECJ ruled that the sale of real estate that was originally held as private property can, under certain circumstances, constitute an economic activity. Depending on the civil law relationship, the community of spouses may be the taxable person.
Circular letter dated 18 March 2025 on SMEs
7 April 2025
Due to an EU directive, national regulations for small and medium-sized entities (SME) had to be adapted by the Member States. Essentially, this involves making them accessible to non-EU entrepreneurs. This involves some significant changes that may also be of interest to entrepreneurs with higher turnover.