The Federal Fiscal Court takes the position that the German statutory rule, pursuant to which only corporations can be controlled companies of a VAT group, is not in line with the VAT Directive. Also, the Federal Fiscal Court calls into question whether the requirement of the subordination of the controlled company under the controlling company is necessary. The ECJ will have to decide whether partnerships have to be included in VAT groups and whether VAT groups are possible between affiliated companies without being a subordinated controlled company. Companies should now already start taking steps in order to prevent detrimental effects or to take advantage of the decisions of the ECJ.