Non-Taxability of Internal Transactions in VAT Groups: Recent ECJ and BFH Judgments and Implications

• The European Court of Justice (ECJ) confirmed that a member state can designate the controlling entity of a VAT group as the sole taxpayer if certain conditions are met.
• Activities not subject to VAT, such as sovereign activities, are not considered “non-business” activities.
• The ECJ reaffirmed that services provided for consideration between members of the same VAT group are not taxable.
• The German Federal Fiscal Court (BFH) ruling of August 29, 2024, and its implications for national VAT group regulations are addressed.
• Changes to the VAT Application Decree and related implementation rules are outlined.

Source: bundesfinanzministerium.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.

---

---