Germany: Import VAT on re-importation of goods; other VAT developments

The Court of Justice of the European Union (CJEU) on June 12, 2025, issued a judgment concerning whether an operation involving the re-importation of horses into the territory of the European Union is subject to value added tax (VAT).  

The case concerned the re-importation of horses into the EU by the taxpayer, which had previously taken them to Norway for competitions. On their return to Sweden, the horses were not properly presented or declared for release for free circulation. The Swedish customs administration then demanded VAT, although no import duties were levied. The taxpayer appealed against this decision, which went all the way to the Swedish Supreme Administrative Court. The court asked the CJEU whether the non-fulfilment of formal obligations precludes VAT exemption on re-importation.

Read a June 2025 report prepared by the KPMG member firm in Germany

Other recent value added tax (VAT) developments that may affect businesses in Germany include:

• Entry into the economic cycle of the Union (BFH, decision of February 18, 2025, VII R 17/22)
• Gratuitous drying of third-party wood chips (BFH, ruling from December 11, 2024, XI R 4/23)
• Apportionment of total remuneration in system catering (BFH, judgment of January 22, 2025, XI R 19/23)
• VAT liability of the protective mask flat rate (BFH, judgment of February 6, 2025, V R 24/23)
• Confirmation of a foreign VAT identification number (BMF, letter dated June 6, 2025, III C 5 - S 7427-d/00014/001/002)
• Input VAT deduction for the non-cash formation of a GmbH (Lower Saxony tax court, judgment of April 3, 2025, 5 K 111/24, appeal lodged; case reference of the BFH: XI R 13/25)
• Payment for entering into a contract with a monetary liability (Münster tax court, judgment of March 11, 2025, 15 K 3303/20 U; appeal lodged; case reference of the BFH: V R 5/25)
• Termination of a leasing contract (OLG Stuttgart, judgment of March 25, 2025 - 6 U 110/24)