Once again, the ECJ has had to decide on how to ascribe the transport of goods in a chain transaction. The ECJ maintains the principles of its case law in its judgment of 26 July 2017 (case Toridas, C-386/16). However, it also sees a decisive criterion in the notification of the resale of the goods, before they leave the country, in order for the transport not to be allocated to the first supply. This will need to be considered in the future.

Based on two decisions of the German Federal Fiscal Court (XI R 25/12 and V R 6/13) regarding cross-border price discounts, the German Ministry of Finance has now completely revised sec. 17.2 of the German VAT Circular. What is pleasing is that the revision provides clarification that a recipient is not obliged to reduce its input VAT if the price reduction is granted by a supplier carrying out a supply of goods from other EU Member States or non-EU countries. However, what is not so pleasing is the extensive obligation to provide proof.

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.