The time has come: The EU Commission has given the go-ahead to implement the final VAT system. This is the beginning of a transition phase in which various changes are to come into force between 2018 and 2022. As a first step, EU-wide regulations for chain transactions and consignment stocks are on the agenda. With respect to intra-Community supplies, the VAT-ID no. shall become a material requirement for the VAT exemption and a uniform framework for documentary evidence shall be defined. The status of the certified taxpayer is to be introduced as a central element. Only companies having this status will be able to benefit from comprehensive simplification rules. As the coming months will bring fundamental changes, companies should start dealing with them now by drawing up a road map.

When the Union Customs Code entered into force, the customs authority started requesting the provision of the tax IDs of employees, executives and supervisory board members when reassessing existing authorizations and applications for the granting of new authorizations. Many companies, however, subsequently expressed doubts as regards the lawfulness of these requests. The Tax Court in Düsseldorf has referred this question to the ECJ. In the meantime, the customs authority has amended its questionnaire for the reassessment of and applications for authorizations.

In its judgments in legal cases C-616/15, C-326/15 and C-605/15, the ECJ ruled that Germany had violated the Union law on VAT exemption of cost sharing associations. According to national law, only associations in the form of so-called technology sharing groups of healthcare professionals are exempt pursuant to sec. 4 no. 14 letter d German VAT Act, and concern members belonging to the medical profession. However, according to the ECJ, all non-profit-making activities must benefit from the VAT exemption. The hopes of banks and insurance companies being in a position to also benefit have now effectively been shattered.