The German Federal Court of Justice (BGH) recently ruled that monthly/quarterly VAT returns and the annual VAT return are separate procedural acts. This change in the BGH’s jurisprudence has practical implications for VAT compliance, including the VAT reporting process, corrections, and the documentation of the VAT return preparation process. Amendments to correct errors that become apparent later should no longer be made in the annual VAT return or in the monthly VAT return for December. Instead, each incorrect monthly/quarterly VAT return should be amended immediately. Internal control systems on the level of each monthly/quarterly VAT return or even on a transactional basis becomes more important.

According to the German Federal Fiscal Court, membership fees of 86,000 sports associations are to be subject to taxation going forward. This has caused considerable uncertainty among volunteers. It is now up to the legislator to rectify this by extending the VAT exemption for sport. This is possible under EU law. Sports clubs must adapt to the new perspective. Even today, there are already winners and losers.

In its judgment T-638/24, the General Court confirms that safety net acquisition VAT is due if the acquirer uses a VAT-ID from another Member State vis-à-vis the supplier – even if this number originates from the Member State of departure. In the opinion of the court, the parallel application of Art. 41 and Art. 203 of the EU VAT Directive does not lead to double taxation in violation of EU law – contrary to the ruling of the ECJ in case C-696/20, where the intra-Community supply was not considered to be VAT-exempt. Whether safety net acquisition VAT arises therefore always depends on whether the underlying intra-Community supply is VAT-exempt or not.