Latest VAT News
Here, we regularly inform you about new court decisions and other newsworthy developments in VAT matters.
Recommendations for a successful ViDA implementation
25 March 2025
The fight against VAT fraud cannot be won with data and technology alone. Both must be embedded in a cooperative compliance process based on trust between the taxable person and the tax authorities. On this basis, the VAT expert group has developed ideas on how to proceed after the introduction of ViDA.
CBAM simplifications
25 March 2025
Since 1 October 2023, a transitional phase has been in effect, in which EU companies must issue quarterly reports on imports of CO2-polluting goods, such as iron, steel, cement, fertilisers, electricity and hydrogen, as well as selected precursors and downstream products. From 2026, things will get serious and payments will have to be made. The bureaucratic burden for companies is huge.
The future of VAT: Eliminating weaknesses
19 March 2025
In its report "VAT after ViDA – Reflections on the Future of VAT”, the VAT expert group has made proposals for a new system, which we have presented in an earlier client information. The report also contains ideas for eliminating specific weaknesses in the existing regulations, which we summarise below.
Federal Central Office for Taxes may not refuse input VAT deduction from final invoices
19 March 2025
In its ruling of 12 December 2024, published on 13 March 2025 (V R 6/23), the Federal Fiscal Court strengthened the rights of the taxable person in the input VAT refund procedure in the event that advance payment invoices were not included in the list of invoices to be attached. However, certain conditions must be observed.
The visions of the VAT Expert Group – VAT after ViDA
18 March 2025
The VAT Expert Group at the European Commission has developed visions for taxation in the future. It looks ahead to 2050 and beyond, providing food for thought and inspiration for future generations.
No liability for wrongly shown VAT on transfer of tenancy
14 March 2025
Anyone who wrongly shows VAT on an invoice owes that amount to the tax authorities. A tenancy agreement can also be regarded as an invoice. If the purchaser of a rental property takes over an existing tenancy agreement, the question arises as to whether they are liable to pay VAT under § 14c of the German VAT Code (UStG) if the previous landlord has wrongly shown VAT on the tenancy agreement.
Significant increase in Intrastat reporting thresholds from 1 January 2025
5 March 2025
The amendment to the Foreign Trade Statistics Act (AHStatG-ÄndG) has been promulgated in the Federal Gazette on March 5, 2005. For some medium-sized businesses, this will likely mean the end of Intrastat declarations.
BFH: Confiscated proceeds must no longer be subject to VAT
28 February 2025
Proceeds of crime may also be subject to VAT. However, if the court orders the confiscation of these proceeds, VAT may no longer be charged on them. This was decided by Germany’s Federal Fiscal Court (BFH) in its decision XI R 6/23 of 25 September 2024, published on 20 February 2025.
Alles auf Anfang bei den Tankkarten: BMF vom 21. Januar 2025
28 January 2025
Das „Vega International“-Urteil des EuGH aus dem Jahr 2019 hatte die Tankkartenbranche alarmiert, denn der EuGH entschied, bei Tankkartenumsätzen liege kein Kraftstoffreihengeschäft vor. In der Fachwelt ging man einhellig davon aus, dass das BMF seine Regelung von 2004 würde überarbeiten müssen. Fünf Jahre später geschieht nun: nichts.
ECJ: Necessity not required for group cost transfer
21 January 2025
In group structures, it is common for a company to procure services centrally and pass them on to other group companies. In the Weatherford case (C-527/23, 12 December 2024), the ECJ ruled that the group companies are entitled to deduct input VAT without a necessity or expediency test, provided that they were granted an economic advantage.