Germany: Taxpayer not required to confirm validity of VAT identification number in advance of every transaction; other VAT developments
Recent VAT developments that may affect businesses in Germany
The Federal Fiscal Court (BFH) on September 15, 2025, agreed to hear the taxpayer’s appeal (V B 25/25) from a decision of the Baden-Württemberg Finance Court of April 3, 2025 (12 K 831/24) regarding the taxpayer’s obligation to confirm the validity of a customer’s value added tax (VAT) identification (ID) number in advance of every transaction.
The court found that because the taxpayer had checked the validity of the customer’s VAT ID number at regular intervals (monthly on average), the taxpayer was entitled to treat a delivery of cars to the customer as VAT-exempt even though the customer’s VAT ID number had expired six days prior to the delivery. The court found that the taxpayer exercised reasonable due diligence and was not obliged to check the validity of the customer’s VAT ID number in advance of every transaction.
Read an October 2025 report prepared by the KPMG member firm in Germany
Other recent value added tax (VAT) developments that may affect businesses in Germany include:
- Taxability of electronic in-app services/app store intermediation (CJEU judgment of October 9, 2025, C-101/24)
- Refund of VAT on supply of tools without transfer to another member state (CJEU judgment of October 23, 2025, C-234/24)
- No service provided for consideration in case of debt collection without a mandate from the debtor (CJEU judgment of October 2, 2025, C-535/24)
- Tax liability of legal representation in pro bono services/reimbursement of costs by the losing party (CJEU judgment of October 23, 2025, C-744/23)
- VAT treatment of various commissions and fees in context of factoring (CJEU judgment of October 23, 2025, C-232/24)
- New BMF letter on e-invoicing dated October 15, 2025, III C 2 - S 7287- a/00019/007/243