If a company holds the majority of shares in another company, the ECJ's jurisprudence on holding companies may apply. Since the ECJ does not attribute the business activities of a subsidiary to its parent company, the holding company and the tax authorities are constantly considering how to improve the situation with regard to input VAT deduction in their favour. This results in legal disputes, which often end up before the ECJ. Specifically, the present case concerns the minimum VAT base in this context.

For years, a perennial issue in VAT audits has been which method is appropriate to use for the breakdown of remuneration. In principle, taxable persons are free to choose the apportionment method, provided that it is appropriate. But what exactly does “appropriate” mean? The German Federal Fiscal Court (BFH) has now ruled on the apportionment of flat-rate prices for Meal Deals, determining when an apportionment, based on the cost of goods, is not appropriate.