The debate over the effect of a retrospective invoice correction in intra-community triangular transactions is coming to an end after its second round. The General Court has made it unequivocally clear that an invoice correction in the context of triangular transactions has no effect, either retrospectively or presently. It thus remains faithful to the line taken by the ECJ in the Luxury Trust Automobile case. Failed triangular transactions cannot be healed. Accurate identification and clear invoicing therefore remain mandatory!

In recent years, the European Court of Justice and the German Federal Fiscal Court (BFH) have clarified a number of fundamental issues concerning the German VAT grouping regime. At present, the VAT Act is set to be amended by the Annual Tax Act 2026, most notably through the introduction of a declaration-based procedure. In a recent judgement, the BFH addressed what may appear to be a comparatively “minor” issue relating to financial integration. In doing so, it continues its recent shift in case law. According to the Court, financial integration may exist even where, despite a majority shareholding, the controlling company does not possess the qualified majority required for shareholder resolutions.

Unsurprisingly, the Federal Fiscal Court (BFH) has confirmed the requirement that turnover from accommodation services is to be allocated. What is surprising, however, given the clarity of its ruling, is that – according to the BFH’s reasoning – not all additional services need necessarily be included in the VAT allocation of package prices. This opens up new planning options and creates a specific need for accommodation providers to review their practices.