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Germany: Deliveries did not qualify as VAT-exempt intra-community supplies; other VAT developments

Recent VAT developments that may affect businesses in Germany

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february 3, 2026

The Federal Fiscal Court (BFH) in December 2025 held that deliveries from a warehouse located in Germany did not qualify as exempt intra-community supplies for value added tax (VAT) purposes because the specific customers for the deliveries were not identified at the start of the shipments.

Read a December 2025/January 2026 report prepared by the KPMG member firm in Germany

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

  • New customs duties on low-value parcels (European Commission (EC) press release dated December 12, 2025)
  • Triangular transactions with more than three parties (EGC judgment of December 3, 2025, T-646/24)
  • Joint and several liability (CJEU judgment of December 11, 2025, C-121/24)
  • Determination of tax debtor (CJEU judgment of December 11, 2025, C-796/23)
  • Incorrect tax statement (BFH judgment of July 9, 2025, XI R 25/23)
  • Input tax deduction for services received in connection with renovation of a castle (BFH judgment of July 9, 2025, XI R 32/22)
  • Reduced tax rate on restaurant and catering services since January 1, 2026 (BMF letter dated December 22, 2025, III C 2 - S 7220/00023/014/027)
  • Transitional provision following the repeal of the sales tax warehouse regulation (BMF letter dated December 29, 2025, III C 3 - S 7157/00010/002/077)
  • VAT treatment of direct consumption from the operation of energy generation plants (BMF letter dated December 17, 2025, III C 2 - S 7124/00010/002/173)

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