As from 01.01.2018, the new version of sec 4 no 8 lit. h of the German VAT Act applies to the VAT exemption for the management of investment funds. According to this new legal position, the scope of the VAT exemption is broader than it has previously been. In particular, the management of AIFs could be subject to changes. The precise limits are, however, currently unclear. Investment fund managers should keep an eye on the implications of the broader VAT exemption on their input VAT deduction.

To date, it has not been possible to ascribe the transport in a chain transaction in a legally watertight way Hence, the ECJ`s decision in the case Kreuzmayr (C-628/16) has been eagerly awaited. In its decision, the ECJ confirmed that the purchaser’s subjective knowledge (provided that it is supported by objective evidence) must be taken into account but not only that of the supplier. Any stated intention made by an intermediary operator as regards a further sale is therefore irrelevant, even if it could have been assumed following the ECJ decision in the case Toridas (C-68/16). Further, the ECJ denies protection of legitimate expectations where a chain transaction was wrongly evaluated.

Many banks outsource single tasks to external providers. Banks are only partly entitled to deduct input VAT. Therefore, banks are interested in the fact that the outsourced services are VAT exempt. The ECJ has already decided that, when purchasing cinema tickets, the processing of debit or credit card payments is not VAT exempt. Now, the German Federal Fiscal Court would like to know if this also applies to the operation of ATMs.