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

Podcast

Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
VATupdate.com – Your FREE source of information on ECJ VAT Cases
Podcasts & briefing documents: VAT concepts explained through ECJ/CJEU cases on Spotify

EU VAT Jurisprudence: November 2025 Briefing Document

This briefing document summarizes key themes and important information derived from the provided sources regarding EU VAT jurisprudence in November 2025. It covers recent ECJ/General Court judgments, Advocate General (AG) opinions, and emerging trends in EU VAT law, including the UK’s post-Brexit divergence.

I. Main Themes:

Uniform Application of VAT Exemptions: The Versãofast case emphasizes the principle of uniform application of VAT exemptions across the EU, particularly concerning financial transactions.
Evidence in Intra-Community Supplies: The FLO VENEER case highlights the importance of assessing all available evidence for VAT exemption in intra-Community supplies, even if formal requirements (“Quick Fixes”) are not perfectly met.
TOMS Limitations: The AG Opinion in P-GmbH & Co. KG clarifies that the Tour Operator Margin Scheme (TOMS) does not apply to excursions combining services with the supply of goods, only to services.
Transfer Pricing and VAT Nexus: The Arcomet Towercranes case establishes a direct link between transfer pricing adjustments and VAT when the adjustments are related to taxable supplies of services.
Validity of Delegated Powers in Customs: The Siegfried Pharma Chemikalien Minden GmbH case upholds the validity and retroactive application of delegated powers in customs regulations.
Invoicing Requirements: The “Roadtrip through ECJ Cases” emphasizes the critical role of invoices and their content (as per Art. 226 of the EU VAT Directive) in the right to deduct VAT.
UK Divergence Post-Brexit: The UK Budget 2025 confirms a divergence from EU VAT rules, specifically rejecting the Skandia ruling on VAT grouping.

II. Key Cases and Opinions:

A. Judgments:

Versãofast (T-657/24): This General Court case established that “VAT exemptions apply uniformly; intermediaries effectively support credit negotiations” are also eligible for VAT exemption. This emphasizes the function served within the financial transaction.
Ecoserv (C-570/24): This case addresses “EU Excise Duty Liability and the Impact of National Criminal Judgments.” The core issue is whether excise duty is payable even after a national court judgment related to criminal activity potentially linked to the excise goods.
FLO VENEER (C-639/24): This ECJ ruling clarifies that “VAT exemption cannot be denied due to missing specific evidence defined by Quick Fixes.” Tax authorities must assess all available evidence. “Alternative evidence may be sufficient for VAT exemption.”

B. Advocate General (AG) Opinions:

P-GmbH & Co. KG (C-565/24): The AG’s opinion clarified that “TOMS does not apply to excursions combined with goods.” TOMS applies only to services.
Nekilnojamojo turto valdymas (C-544/24): AG Opinion that National law’s fixed late payment interest aligns with EU law

C. Other Important Cases/Topics:

Arcomet Towercranes (C-726/23): This case is significant for multinational corporations. “Transfer Pricing Adjustments May Be Consideration for Taxable Supply of Services Under VAT.” This creates a direct link between transfer pricing and VAT.
Siegfried Pharma Chemikalien Minden GmbH (C‑617/24): This customs case “upheld the validity of delegated powers in customs regulations and their retroactive application.”
“Roadtrip through ECJ Cases”: This refers to a series of cases that “review the content of an invoice required for the Right to deduct VAT,” referencing Art. 226 of the EU VAT Directive.

III. Key Concepts and Definitions (from Glossary):

VAT (Value Added Tax): A consumption tax assessed on the value added to goods and services at each stage of production or distribution.
ECJ (European Court of Justice): The highest court in the European Union.
General Court: A court of the European Union that hears cases brought by individuals and companies against EU institutions.
AG (Advocate General): An officer of the ECJ who provides a legal opinion.
EU VAT Directive 2006/112/EC: The principal legislative instrument governing VAT within the European Union.
Intra-Community Supply: The supply of goods from a business in one EU member state to a business in another EU member state.
VAT Exemption: A situation where a supply of goods or services is not subject to VAT, though input VAT may not be recoverable.
Quick Fixes: A set of standardized measures introduced to simplify and harmonize the VAT treatment of intra-Community supplies of goods.
TOMS (Tour Operator Margin Scheme): A special VAT scheme applicable to tour operators.
Transfer Pricing: The setting of prices for transactions between related entities within a multinational enterprise.
Excise Duty: A tax levied on the production, sale, or consumption of specific goods.
Customs Duty: A tax levied on goods when they are transported across international borders.
Input VAT: The VAT paid by a business on its purchases of goods and services.
Output VAT: The VAT charged by a business on its sales of goods and services.
VAT Grouping: Allows closely related companies to be treated as a single taxable person for VAT purposes.
Skandia Ruling: A European Court of Justice case that dealt with VAT grouping and the treatment of branches of a company located in different countries.

IV. Implications for EU Compliance:

Evidence Gathering: Businesses engaging in intra-Community supplies must maintain meticulous records and gather diverse evidence to support VAT exemptions, going beyond the formal “Quick Fixes” requirements.
Transfer Pricing Scrutiny: Multinational corporations need to carefully analyze the VAT implications of transfer pricing adjustments, particularly regarding services provided between related entities. As one source says, “VAT Applies to Transfer Pricing Adjustments – Key Risks and Guidance for Multinationals.”
Invoice Accuracy: Businesses must ensure that invoices comply with Art. 226 to guarantee VAT deductibility.
Monitoring UK VAT Divergence: Businesses operating between the UK and the EU must closely monitor the UK’s diverging VAT rules and adapt their compliance strategies accordingly. The “UK Budget 2025 confirms that the UK is diverging from EU VAT rules, specifically mentioning a rejection of the Skandia ruling on VAT grouping.”
Customs Compliance: Companies need to stay informed about the retroactive application of new customs regulations based on delegated powers.

V. Open Questions and Further Research:

The Mercedes Benz case (T-680/25) raises questions about the VAT treatment of free-of-charge provision of moulds.
Several Dutch Supreme Court referrals to the CJEU regarding VAT and real estate indicate ongoing uncertainty in that area.

Overviews

Judgments (Order)