The ECJ decides on legal issues relating to the application and interpretation of EU law. National courts can refer questions to the ECJ in the form of a reference for a preliminary ruling. It has now been decided to amend the Statue of the Court of Justice of the EU and change its jurisdiction. In future, the General Court (EGC), rather than the ECJ, will, in principle, make decisions in specific areas, including VAT, customs, excise duties and the tariff classification of goods in the Combined Nomenclature. This will apply to all questions referred for a preliminary ruling from 01.10.2024 onward. It is also provided that, in future, parties' written submissions will be published on the website of the Court of Justice of the EU after cases are closed.

The taxation of travel services is a long-running issue in ECJ case law. The ECJ’s recent judgment in Dragoram Tour turns German practice on the taxation of travel services on its head.

The decision in which the German Federal Fiscal Court asked the ECJ whether internal supplies within a VAT group are subject to VAT was a big surprise. If the ECJ had agreed, the VAT group would no longer have made sense. The ECJ Advocate General, Mr Rantos, calmed the nerves of the businesses with his opinion in the proceedings. Very promptly, the ECJ itself adopted the Advocate General’s opinion in its judgement. It also considers internal supplies not to be subject to VAT. It is to be hoped that the Federal Fiscal Court will now also agree with this without any ifs or buts.