Germany: VAT grouping, other VAT developments

It is still unclear whether transactions within a VAT group (intra-group sales) will be subject to VAT.

It is still unclear whether transactions within a VAT group (intra-group sales) will be su

The Court of Justice of the European Union (CJEU) held (1 December 2022 – case C-141/20 – Norddeutsche Gesellschaft für Diakonie mbH; 1 December 2022 – case C-269/20 – Finanzamt T) that the German regulations on fiscal entities for value added tax (VAT) purposes are compatible with EU law. Read TaxNewsFlash

However, it is still unclear in particular whether transactions within a VAT group (intra-group sales) will be subject to VAT moving ahead. It is eagerly awaited how the German Federal Tax Court (BFH) will implement the statements of the CJEU in its subsequent rulings.

Read a January 2023 report [PDF 495 KB] prepared by the KPMG member firm in Germany

Other recent VAT developments that may affect businesses in Germany include the following items:

  • Vouchers for staff (CJEU, 17 November 2022 – case C-607/20 – GE Aircraft Engine Services)
  • Reminder that rules on non-objection in the case of granting guarantees ended on 31 December 2022 (BMF, guidance of 11 May 2021, 18 June 2021, 18 October 2021)
  • Missing reference to “tax liability of the recipient of the supply” in the case of triangular transactions (CJEU, 8 December 2022 – case C-247/21 – Luxury Trust Automobil GmbH)
  • Invoices showing too much VAT (CJEU, 8 December 2022 – case C-378/21 – Finanzamt Österreich)


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