Operators of electronic marketplaces shall be held liable for the VAT owed by other companies who used the marketplace to sell goods in Germany without paying VAT. According to the government's draft of the law to avoid VAT shortfalls on the trade with goods on the Internet, operators are to be encouraged to cooperate only with companies who can prove they are registered in Germany. Otherwise the operators may be held liable for the VAT not paid.

In its judgment of 25.07.2018 (C-05/17) the ECJ decided that a service provider does not provide VAT-exempt payment and transfer transactions by the mere act of direct debiting and forwarding of money. This case is yet another ECJ ruling which finds that outsourced financial service supplies are subject to VAT. Cost advantages are nullified by VAT liability in this area for certain sectors like banks, insurance companies and doctors.

The Fiscal Court in Hesse dealt with the issue of absorption of employee relocation expenses by employers in a judgement published in July 2018 (6 K 2033/15 of 22.02.2018). In the particular case, the Court held that the employer’s business interest in the move took priority. Thus, there is no free of charge supply here. Consequently, the absorption of relocation expenses by an employer can justify a claim for the company’s input VAT deduction. The Court considered the assumption of an exchange-like transaction as unrealistic