- Germany’s BMF has updated VAT rules for VAT groups (Organschaft) following CJEU/BFH case law, effective 1 April 2026.
- Intra-group supplies are no longer broadly ignored where they relate to non-economic or non-business activities, which can trigger VAT and affect input VAT recovery.
- The change is especially relevant for holding companies, public-sector bodies, universities/hospitals, and partially exempt businesses.
- New examples were added to the VAT guidance, and separate rules for cross-border VAT groups are still expected.
- The previous administrative practice can still be used until 31 December 2026, but businesses should review charging models and tax systems now.
Source: vatcalc.com
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.
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