Latest VAT News
Here, we regularly inform you about new court decisions and other newsworthy developments in VAT matters.
Credit intermediary services in the absence of authority to conclude contracts
26 November 2025
On 26 November 2025 (T-657/24), the European Court (EC) ruled on a Portuguese request for a preliminary ruling on the concept of intermediary services in credit intermediation.
VAT exemption for an unauthorised private hospital
27 November 2025
In its ruling of 8 July 2025, published on 27 November 2025 under file no. XI R 36/23, the Federal Fiscal Court in Germany (BFH) ruled on the possible VAT exemption of services provided by a private hospital that was not licensed under § 108 of the German Social Code, Book V (SGB V).
Educational services: BMF circular dated 24 October 2025
12 December 2025
On 1 January 2025, § 4 No. 21 of the German Value Added Tax Act (UStG) on educational services was amended. The legislator responded to infringement proceedings, according to which the previous German regulations did not comply with EU law. It was clear from the outset that this new version would require interpretation by the tax authorities. On 24 October 2025, the circular from the Federal Ministry of Finance was finally published.
Factoring with collection as partial loan
12 December 2025
On 23 October 2025, the ECJ ruled on the Finnish case A Oy (C-232/24), which concerned various types of factoring with collection of the claim. The question to be clarified was whether the service consisted entirely of the taxable collection of claims, or whether it included a VAT-exempt loan.
BMF circular on e-invoicing
28 November 2025
Exactly one year after its circular dated 15 October 2024, the BMF (Federal Ministry of Finance) has published another circular on e-invoicing. It incorporates the new legal regulations that have been in force since 1 January 2025 into the German VAT Implementation Regulations, supplements the previous version on a number of points and focuses on technical validation.
Scientific and educational events
24 November 2025
On 24 October 2025, the Federal Ministry of Finance (BMF) published an information sheet intended to inform businesses about the criteria for VAT exemption for lectures, courses and other scientific or educational events in accordance with § 4 No. 22 letter a of the German VAT Act (UStG).
Current legislative initiatives relating to VAT
6 October 2025
The German government, no longer so new, is attempting to stimulate the economy with tax measures. The draft bill for a Tax Amendment Act 2025, dated 4 September 2025, and the government draft bill for a law on modernising and digitising the fight against undeclared labour, also provide for changes to VAT.
ECJ rules on the Arcomet case concerning transfer pricing adjustments
6 October 2025
In the Arcomet Towercranes case (C-726/23), the ECJ ruled on 4 September 2025 that a transfer pricing adjustment can constitute a retrospective increase of the taxable amount. However, the decision cannot be generalised.
Soziale Einrichtungen, Persönliches Budget und Steuerfreiheit
6 October 2025
Mit seinem Urteil vom 30. April 20025, veröffentlicht am 18. September 2025 (XI R 25/24), entschied der BFH abermals zu den Auswirkungen eines sog. persönlichen Budgets auf die Steuerfreiheit von Leistungen von sozialen Einrichtungen.