Comments on ECJ C-184/23: Transactions within VAT groups may be VAT-exempt

According to the Advocate General, internal transactions within the VAT group do not fall within the scope of VAT or are not VATable according to German
terminology. If the CJEU adopts this view, then the German view on VAT groups with regard to nontaxable intra-group transactions can remain (as before). However, it remains to be seen whether the CJEU will actually follow the Advocate General’s arguments.
Directive 77/388/EEC (6th Directive) is still applicable to the facts of the case before the CJEU, as can be seen from the question referred by the BFH. Ultimately, however, this does not play a decisive role, as the VAT Directive does not contain any decisive changes in this respect either, so that the CJEU’s decision should also be transferable to later disputes that have to be resolved with the successor regulation in the VAT Directive.

Source KPMG