Germany: Determination of place of supply of marketing services (Federal Fiscal Court decision); other VAT developments
Other Federal Fiscal Court decisions and guidance from Federal Ministry of Finance
May 28, 2026
The Federal Fiscal Court (BFH) in December 2025 held that the place of supply for marketing services provided to a German liaison office on behalf of a hotel operator in Mauritius was not in Germany because the services were actually consumed from an economic perspective at the head office in Mauritius. The taxpayer was thus not entitled to deduct input VAT in respect of the marketing services received.
Read an April 2026 report prepared by the KPMG member firm in Germany.
Other recent VAT developments that may affect businesses in Germany include:
- No transfer of a going concern in case of business continuation by a lessee (BFH decision of November 13, 2025)
- Transfer of solar park assets to multiple acquirers (BFH decision of November 13, 2025)
- Reduced VAT rate for Sudoku magazines (Federal Ministry of Finance (BMF) letter of April 10, 2026)
- Entrepreneurial status of co-ownership communities (BMF letter of April 9, 2026)
- VAT exemption for supplies of goods preceding an import (BMF letter of April 9, 2026)
- Input VAT deduction and deemed supplies (BMF letter of April 1, 2026)
- VAT group (Organschaft) (BMF letter of April 1, 2026)