The Italian fixed establishment of a German headquarters was to be regarded as being significantly involved in a supply of goods by the German headquarters to an Italian customer. This was decided by the Italian tax authorities in a binding ruling in 2023. Very recently, the Italian tax authorities have had to rule again, in a similar case, and this time made a decisive distinction: The involvement of a fixed establishment in a supply of goods is to be ruled out if the fixed establishment merely renders supporting, administrative activities.

The German Federal Fiscal Court has issued its first ruling on the VAT liability of administrative services for dependent foundations. Contrary to what many observers had assumed, these administrative services are not (non-taxable) internal transactions. The specific facts of each case are crucial. Trustees of dependent foundations and other asset pools must now examine their contracts to determine whether they provide their services for consideration.