Digital business models are creating new challenges for EU VAT law: Are supposedly free IT services really free – or do we pay with our data? If so, this may qualify as a supply for consideration subject to VAT. A recent working paper from the EU VAT Committee provides further clarification on the existing guidelines and explains when there can be a direct link between IT services and personal data. In our newsletter, we give you a clear overview of the most important updates and background information.

In VAT practice, a well-known risk persists: Member States interpret the conditions for the simplification of triangular transactions differently. Some only apply the rule if exactly three parties are involved. The German tax administration is more flexible: more than three parties may participate – but the simplification applies only to the last three taxable persons in the chain (sec. 25b para. 2 of the German Administrative VAT Guidelines). Neither restriction can be found in the wording of the EU VAT Directive. Are these limitations even permissible? The General Court makes it clear in its recent judgment of 3 December 2025 (T‑646/24): No.

For years, social comparability in the provision of services has been a contentious issue with the tax authorities when it comes to the question of VAT exemption for private clinics. In one of its final rulings, the now dissolved XIth Senate of the Federal Fiscal Court (Case No.: XI R 36/23) addresses various individual aspects of this criterion. Although the decision was unfavourable for the clinic involved, the judgment nevertheless offers positive aspects for private clinics seeking VAT exemption.