The Federal Ministry of Finance has extended the transitional phase for the VAT treatment of supplies via stocks until 31.12.2019. Hence, companies affected by this change have gained further time and presumably will only have to deal with this issue as 2020 approaches. Quick Fixes containing an EU-wide simplification rule for consignment stocks will then be implemented.

The 8th Senate of the German Federal Fiscal Court has joined the 9th Senate. It also voiced serious doubts that the interest rate of 6% p.a. in sec 238 para 1 of the German General Fiscal Code is constitutional. According to the 8th Senate, this has even applied since (November) 2012. The German Federal Constitutional Court plans to decide on this question before the end of the year. Until then, taxpayers should appeal against all interest assessments and apply for suspension of enforcement.

With its judgement of 17 October 2018 in the Ryanair case, the ECJ confirmed that holding companies do not play a special role in VAT law. The only signifi-cant factor is whether they are taxable persons within the scope of the VAT Directive. The tax authorities should now rethink. The mere denial of the right to deduct input VAT with reference to the holding structure is not permitted. However, holding companies should also assess their VAT status if they want to avoid expensive surprises.