A VAT-ID is not necessarily a “real” VAT-ID. That was the problem the ECJ had to deal with in the case “Euro Tyre 2”. The ECJ unsurprisingly continued applying the basic principles of its recent decisions and came to the conclusion that the formal requirements are not substantive conditions for the VAT exemption. Hence, the VAT exemption cannot be refused solely on the grounds that the VAT-ID employed by the purchaser was not yet registered in the VIES, even if the supplier was aware of this fact. Apparently, the significance of VAT-IDs is being reduced more and more by the ECJ. This is only limited by fraudulent activities or if the substantive conditions for the VAT exemption cannot be proven because of the non-compliance.

Large groups of companies find it difficult to establish the organizational incorporation for a VAT group. Most recently, the V. Senate interpreted this requirement very strictly. Now, the XI. Senate has deviated from that. An organizational incorporation can also exist without the managing director being both managing director of the parent company and the subsidiary. Thus, in particular, the general meeting’s rights to instruct, as well as the parent company’s managing director’s right to instruct vis-à-vis the subsidiary’s managing director, might be sufficient.

Supplies via consignment stocks are deemed to be direct supplies to the customer and any interim storage will remain unconsidered if the recipient is already known at the beginning of the transport. This is the decision of the Federal Fiscal Court (V R 31/15) published yesterday. The Court came to the same conclusion as that reached by the lower tax courts in their decisions of the past two years. The Federal Fiscal Court thereby opposes the current undifferentiated opinion of the fiscal authorities. This will be welcome news for some foreign suppliers who will therefore be able to avoid registration in Germany. However, practical difficulties might arise, e.g. the time difference between the beginning of the dispatch and the invoicing or the interaction with commercial law and income tax law. In any case, consignment stock agreements and their handling now need to be checked.