- Internal services within a VAT group are not subject to VAT, whether used for business or non-economic activities.
- The BFH confirmed, following the ECJ, that paid services between group companies and the controlling entity remain non-taxable.
- The tax authority clarified that this non-taxability applies to both business and non-economic uses, updating the VAT application decree accordingly.
- The changes apply to all open cases, but the previous rules may still be used until December 31, 2026.
- A separate statement on cross-border VAT groups will be issued.
Source: ebnerstolz.de
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Germany"
- Germany Updates Form USt 1 TN for VAT Registration Proof: Editorial Changes Announced
- German Court Confirms VAT Exemption Protection for Intra-Community Supplies Without Arrival Proof
- Double Adjustment Errors in VAT and Insolvency May Cause Double Taxation Risks
- Germany’s March 2026 E‑Invoice FAQ Update: All References Must Be Self-Contained in the E‑Invoice
- German Court Clarifies VAT Exemption Criteria for Intra-Community Supplies of Goods
