Recent ECJ/General Court VAT Jurisprudence and Implications for EU Compliance (October 2025)

Podcast

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• Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
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• Podcasts & briefing documents: VAT concepts explained through ECJ/CJEU cases on Spotify

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EU VAT Jurisprudence Briefing Document (October 2025)

This briefing document summarizes key themes and important information from the provided sources related to recent European Court of Justice (ECJ) and General Court jurisprudence on Value Added Tax (VAT) within the European Union. It covers court rulings, advocate general opinions, pending cases, and the practical implications for businesses.

I. Main Themes & Key Ideas

• Focus on Recent Jurisprudence: The primary focus is on analyzing recent ECJ and General Court judgments and opinions to understand their implications for businesses operating within the EU. The goal is to keep businesses compliant with EU VAT law through this understanding.
• Impact on Member States: ECJ rulings shape the interpretation and application of the EU VAT Directive (2006/112/EC) at the national level, promoting harmonization and consistency across member states. This is achieved by “clarifying specific VAT concepts and addressing areas of ambiguity or divergence in national implementations of VAT law.”
• Significance of Advocate General (AG) Opinions: While non-binding, AG opinions often significantly influence the ECJ’s decisions. Understanding them provides insight into the likely direction of future rulings. The AG provides “a legal analysis and recommendation, which the Court often considers when formulating its judgment.”
• VAT Liability for Digital Platforms: Recent rulings, such as ECJ C-101/24 (Xyrality), clarify that digital platforms like app stores can be deemed the suppliers in digital sales for VAT purposes. This means that the digital platforms have VAT liability.
• Challenges of VAT and Transfer Pricing: Multinational corporations face complexities surrounding VAT and transfer pricing, particularly in intragroup transactions. ECJ cases are addressing some of these challenges, but issues remain.
• Combatting VAT Fraud: The sources address ongoing challenges and controversies related to VAT fraud within the EU. The “Kittel Principle” allows tax authorities to deny VAT deductions to businesses that knew or should have known they were participating in VAT fraud.
• Keeping Updated: Aside from the specific cases, the sources also stress the importance of staying updated on the cases by “listening to podcasts, reading briefing documents, and attending webinars.” Finally, VATupdate.com is suggested as a source of information on ECJ VAT Cases.

II. Key Facts and Case Examples

• ECJ Case C-101/24 (Xyrality): App stores are deemed to be suppliers in digital sales and are therefore liable for VAT on in-app purchases.
• ECJ Case C-232/24 (Kosmiro): Factoring fees are considered taxable services under EU VAT law.
• ECJ Case C-544/24 (Nekilnojamojo turto valdymas): Addresses the issue of VAT penalties and interest, questioning if these fines are disproportionate and duplicative under EU law.
• ECJ C-515/24 (Randstad España) AG Opinion: EU VAT law may permit entertainment deduction limits if those limits were timed with Directive transposition.
• ECJ Case C-409/04 (Teleos): Emphasizes physical movement and supplier due diligence as key factors for Intra-EU VAT exemption.
• ECJ Case C-726/23 (Arcomet): Clarifies VAT rules for Transfer Pricing adjustments in intragroup transactions.
• “Questions to ECJ – Quick Fixes Under Scrutiny?”: Investigates whether an EU VAT ID is a substantive requirement for zero-rating.
• Kittel Principle: Allows tax authorities to deny VAT deductions to businesses that knew or should have known they were participating in VAT fraud.
• VATupdate.com: “Your FREE source of information on ECJ VAT Cases.”

III. Impact and Implications

• Businesses Operating in the Digital Economy: Need to understand and adapt to the VAT treatment of digital platforms and e-commerce transactions, as clarified by recent ECJ rulings.
• Multinational Corporations: Must carefully consider VAT rules for transfer pricing adjustments and intragroup transactions.
• All Businesses: Should implement strong due diligence procedures to avoid being implicated in VAT fraud and potentially losing VAT deductions under the Kittel Principle.
• Compliance Officers: Must stay informed of ECJ rulings and AG opinions to ensure compliance with EU VAT law. Resources like podcasts, briefing documents, webinars, and VATupdate.com can be invaluable.

IV. Outstanding Issues

• VAT and Transfer Pricing: While some ECJ cases have addressed the challenges, issues remain unresolved and require careful consideration of VAT rules for transfer pricing adjustments.
• National Limits in VAT Fraud Prosecutions: ECJ VAT Case C-496/25 (Lin III) addresses the potential for EU law to override national limits in VAT fraud prosecutions.
• Quick Fixes Under Scrutiny: The question of whether an EU VAT ID is a substantive requirement for zero-rating is under scrutiny.

This briefing document provides an overview of the key issues and information contained in the provided sources. It is important to consult the original sources for more detailed information and legal advice.

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Overviews

• 1083 ECJ VAT Cases are now available on www.VATupdate.com – ALPHABETICAL INDEX
• 1083 ECJ/General Court VAT Cases are now available on www.VATupdate.com
• ECJ VAT Cases – Link to the relevant article in the EU VAT Directive 2006/112/EC
• ECJ VAT Cases decided in 2025
• ECJ/General Court VAT Cases – Pending cases

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Judgments (Order)

• ECJ C-101/24 ( XYRALITY) – Judgment – German developer is not liable for VAT on services via an app store
• ECJ Customs C-86/24 (CS STEEL a.s.) – Judgment – EU Court Rules on Non-Preferential Origin and Substantial Transformation
• ECJ VAT C-232/24 (Kosmiro) – Judgment – Factoring Fees Are Taxable Services Under EU VAT Law
• ECJ VAT C-234/24 (Brose Prievidza) – Judgment – VAT Refund Not Barred by Lack of Export
• ECJ VAT C-744/23 (Zlakov) – Judgment – Pro Bono Legal Services are subject to VAT

AG Opinion

• ECJ C-515/24 (Randstad España) – AG Opinion – EU VAT Law Permits Entertainment Deduction Limits If Timed with Directive Transposition
• ECJ Customs C-307/23 (G GmbH) – AG Opinion – EU-Designed Label Templates Must Be Included in Customs Value as Container Costs
• General Court T-575/24 (Digipolis) – AG Opinion – Associations Providing Paid Services to Members Are Taxable
• General Court T-638/24 (D GmbH) – AG Opinion – VAT on Intra-Community Acquisitions Not Precluded by Errors
• ECJ VAT C-544/24 (Nekilnojamojo turto valdymas) – Questions – VAT penalties and interest challenged as disproportionate and duplicative under EU law…

Questions

• ECJ VAT C-496/25 (Lin III) – Questions – EU law may override national limits in VAT fraud prosecutions
• General Court VAT case – T-614/25 (Trading 4) – Questions – VAT Exemption in EU Chain Transactions: When Does Ownership Transfer Trigger Tax…

New ECJ/General Court Cases 

• New ECJ VAT Case T-680/25 (Mercedes Benz) – No details known yet
• New GC VAT Case T-689/25 (James Howden and Co.) – No details on Curia yet but ….

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Agenda

• Agenda of the ECJ/General Court VAT cases – 3 Judgments, 2 AG Opinions, 1 Hearing till November 27, 2025

Briefing document & Podcast

• Briefing document & Podcast – C-409/04 (Teleos): Physical Movement & Supplier Due Diligence Key for Intra-EU VAT Exemption
• Briefing document & Podcast: C-438/13 (BCR Leasing Case) – Relief for Leasing Firms Facing Asset Non-Recovery
• Briefing document & Podcast: C-536/08 (X) and C-539/08 (Facet Trading) – No deduction on Intra-EU acquisitions taxed at the MS of identification of the purchaser,…
• Briefing document & Podcast: ECJ C-271/06 (Netto Supermarkt) – VAT exemption granted if fraud undetectable with due commercial care
• Briefing document & Podcast: ECJ C-580/16 (Hans Bühler) – Late submission of recapitulative statements should not disqualify a business from exemptions
• Briefing document & Podcast: ECJ Rulings on Reductions of the Taxable Amount through Rebates
• Briefing document & Podcast: ECJ VAT C-401/18 (Herst) – Cross-Border Fuel Transactions: Legal Determination of Ownership and Tax Jurisdiction
• Briefing document & Podcast: ECJ VAT C-622/23 (RHTB) – VAT Implications in Work Contract Cancellations
• Briefing Document & Podcast: VAT concepts ”Chain Transactions” & ”Triangulation” explained based on ECJ/CJEU cases
• Briefing documents & Podcasts: VAT concepts explained through ECJ/CJEU cases on Spotify

Comments on ECJ Cases

• Comments on ECJ C-101/24 (Xyrality) – Judgment on app stores as VAT commissionaires
• Comments on ECJ C-101/24 (Xyrality) – VAT Treatment of Mobile App Services Before 2015
• Comments on ECJ C-232/24 (Kosmiro): Where does credit end and debt collection begin?
• Comments on ECJ C-234/24: VAT Refund on Tooling Not Automatically Excluded for Cross-Border Equipment Sales
• Comments on ECJ C-436/24 (Lyko) – Loyalty programs and VAT: AG’s opinion in Lyko case brings new perspectives
• Comments on ECJ C-515/24 (Randstad España) – AG – Introduction of exclusion of VAT deduction of representation expenses by Spain not contrary…
• Comments on ECJ C-535/24 (Svilosa) – VAT Deduction on Recovery Actions Not Considered Taxable Service
• Comments on ECJ C-602/24 (W.) – VAT Exemption for EU Goods Exported Outside Union After Intra-Community Supply
• Comments on ECJ C-744/23: No-Cure-No-Pay Services Are Subject to VAT
• Comments on ECJ C-794/23 (Finanzamt Österreich) – No VAT Liability for Incorrect Rates Charged to Non-Taxable Consumers
• Comments on ECJ C-808/23 (Högkullen) – ECJ Rules Against Automatic Single Supply Treatment for Intra-Group Management Services
• Comments on ECJ case C-101/24 (XYRALITY GmbH): Clarification Article 28 VAT Directive Scope for In-App Purchases Before 2015 Regulation
• Comments on ECJ case C-101/24 (Xyrality): ECJ Confirms Deemed Reseller Rule for App Store In-App Purchases
• Comments on ECJ case C101/24 (Xyrality): Is a Digital Platform Liable for VAT on App Sales?
• Comments on ECJ case C-206/24 (Caves Andorranes): Duty to Refund Unlawfully Levied Import Duties Within Three Years of Entry in Accounts
• Comments on ECJ case C-234/24 (Brose Prievidza): VAT for Cross-Border Sales of Tools and Moulds Retained by Manufacturer
• Comments on ECJ case C-234/24 (Brose Prievidza):No VAT Exemption for Tooling Without Physical Movement
• Comments on ECJ Case C-726/23 (Arcomet) – Decision Clarifies Intra-Group VAT and Transfer Pricing Rules
• Comments on ECJ Case C-726/23 (Arcomet) – ECJ clarifies VAT rules for Transfer Pricing adjustments in intragroup transactions
• Comments on GC T‑575/24 – AG – Contrary to EU law if services provided to members are regarded as internal acts

Customs Value

• Determination of Customs Value and Proof of Origin for Preferential Treatment: Logista v Spanish State
• Determining Customs Value of Goods: Successive Sales and EU Customs Code Interpretation (Case C-500/24)

E-Commerce/Electronic Services

• CJEU Clarifies VAT Rules for App Stores: Platforms Deemed Suppliers in Digital Sales
• CJEU Rules on VAT Liability of Digital Platforms in Xyrality Case C-101/24
• Virtual Currency Taxation: Analyzing VAT Implications in Gaming Post Case C-472/24

Germany

• Germany: Key VAT Changes in 2025 Tax Amendment Act and Recent VAT Developments Affecting Businesses
• VAT Margin Scheme: Protection of Legitimate Expectations in Light of Recent BFH and ECJ Decisions

Greece

• Audit Documentation Procedures: Distinguishing Abusive Practices from VAT Fraud under Kittel Jurisprudence

Other

• Analysis of ECJ-cases on VAT for Ancillary Services in German Accommodation Sector
• ECJ Rules Factoring Fees Are Subject to VAT as Single Indivisible Debt Collection Service
• EU Charter Sets Procedural Safeguards and Limits Sanctions in VAT Enforcement: Key CJEU Rulings
• Questions to ECJ – Quick Fixes Under Scrutiny: Is an EU VAT ID a Substantive Requirement for Zero-Rating?
• VAT Neutrality and Tax Fraud: Implications of Recent Jurisprudence

Poland

• VAT Exemption for CO₂ Emission Allowance Forward Transactions Under EU Court Review

Roadtrip through ECJ/CJEU/GC Cases

• Roadtrip through ECJ Cases – Focus on “Liability to pay VAT – VAT shall be payable by any person who enters the VAT on an invoice” (Art. 203)
• Roadtrip through ECJ Cases – Focus on ”Deemed supply of services” (Art. 25-28)”
• Roadtrip through ECJ Cases – Focus on ”Exemption – Financial transactions – Credits and transfer of Credits” (Art. 135(1)(b))
• Roadtrip through ECJ Cases – Focus on ”Exemption – Financial transactions – deposit and current accounts, payments, transfers, debts, cheques and other…
• Roadtrip through ECJ Cases – Focus on ”Free Products” (Art. 16)
• Roadtrip through ECJ Cases – Focus on ”Place of supply of Goods – Chain Supplies” (Art. 32)
• Roadtrip through ECJ Cases – Focus on Place of Supply of Intra-Community Acquisitions – ”Triangulation” (Art. 42)
• Roadtrip through ECJ Cases – Focus on the Exemption for Intra-Community supplies of goods (Art. 138)

Slovakia

• Electric Vehicle Charging Abroad: VAT Treatment and Refund Eligibility for Slovak Companies

Spain

• Spanish Tribunal Rules VAT Included in Sales Where VAT Cannot Be Recharged to Clients

Sweden

• Disclosure of Supplier’s Identity Post-Purchase Does Not Exclude Article 28 VAT Directive Application

Transfer Pricing

• CJEU Clarifies VAT on Transfer Pricing Adjustments and Intra-Group Services: Key Implications for Businesses
• Complex Interplay: Transfer Pricing and VAT Challenges for Multinational Corporations in the EU
• VAT and Transfer Pricing – Four recent cases @ ECJ/CJEU – 3 cases decided, 1 case pending

United Kingdom

• Post-Brexit VAT Divergence and why the EU Forgives and the UK Doesn’t?
• VAT Input Tax Denial Under Kittel Principle – Appeals Allowed Against HMRC

Vouchers

• Loyalty Points Are Not Vouchers for VAT: CJEU AG Opinion in Lyko Operations Case

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Past editions

• Recent ECJ/General Court VAT Jurisprudence and Implications for EU Compliance (Sept 2025)

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