- CJEU case law in P-GmbH I and II has significantly changed the treatment of incorrect VAT shown on invoices: invoice-based VAT liability no longer automatically applies if there is no risk to tax revenue.
- Under the newer CJEU approach, a reasonable estimation is expressly allowed to distinguish between invoices that endanger tax revenue and those that do not, especially in mass-market/retail situations where recipients can no longer be clearly identified.
- The Berlin-Brandenburg Fiscal Court (25 June 2026, 2 K 2046/25) appears to be the first German tax court to make its own estimation in the context of Section 14c VAT Act (UStG) after P-GmbH II.
- The ruling follows the principle that in end-consumer cases, invoice-based VAT liability under Section 14c UStG generally should not arise if there is no danger to tax revenue.
Source: datenbank.nwb.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.
