Most recently, the ECJ and the Federal Fiscal Court clarified that success-dependent remunerations paid for participating in competitions are not subject to VAT. In a recent Federal Fiscal Court decision of 25.07.2018 (XI B 103/17) this newer case-law is confirmed. The fact that, in addition to the activity associated with uncertainties, there is a further, definite activity, does not lead to the success payment being subject to VAT. When concluding contracts for success-dependent remuneration, it is important to check to which activities relevant payments relate and at what point in time any uncertainty about such payments exists. If there is uncertainty, at the point in time the supply of service is rendered, whether or not a payment will be made, the transaction is not subject to VAT.

The Federal Fiscal Court has made a landmark decision on communities of part owners: From a VAT perspective, communities of part owners no longer exist. Consequently, the “mystery” associated with communities of part owners lives on. Our newsletter advises you about the practical consequences of this decision and why it falls back to the tax authority to impose Federal Fiscal Court decisions with non-application decrees

The German Ministry of Finance provides comprehensive comments on the new regulations regarding the liability of operators of electronic marketplaces. Unfortunately, a number of practical issues that are relevant to marketplace operators remain unanswered.