The Federal Supreme Court recently ruled, that tax evasion could be considered as already having been detected, even before the tax office has examined the relevant tax return. Once the tax crime is considered as detected, self-disclosure no longer offers exemption from punishment. This may also apply to VAT: When a VAT return requires correction, it might already be too late for a self-disclosure with the effect of exemption from punishment. The assumption of an intentionally committed tax evasion can be effectively prevented by the implementation of a Tax Compliance Management System.

It is difficult for corporations to establish the organizational integration for a VAT-group. Recently, the V. Senate of the Federal Fiscal Court interpreted this feature very strictly. Now, however, it is the V. Senate which, by judgment of 10 May 2017 – V R 7/16, has stated that an organizational integration is possible even in the absence of personnel interweaving of the executive bodies, if a controlling and profit-and-loss transfer agreement exists.

In the past, the ECJ has often had to decide cases on VAT exempt intra-Community supplies. The most recent decision (decision of 14.06.2017 – legal case C-26/16), demonstrates an important procedural aspect: Where the tax authority has already examined the affected transactions and the existing documentation and did not object, it may not retroactively deny tax exemption due to the principle of legal certainty. This also applies beyond intra-Community supplies.