The settlement of past property developer cases has stagnated due to the Federal Fiscal Court decision of 27.01.2016. According to this decision, the point in time the property developer pays the VAT amount to the supplier is decisive as regards the tax assessment for the supplier and the property developer’s refund claim. The result is property developers losing their interest return. The fiscal authorities have now discontinued payments to property developers until further clarification. In its current judgment, the tax court in Münster opposes the Federal Fiscal Court’s opinion. An appeal is now pending.

The Arab Gulf states are intending to implement a VAT system, however the process is currently only in its infancy. Numerous other countries are now focusing on increasing their revenues from e-commerce and distance sales. The EU member states currently have other problems to cope with. This time it is Estonia, Italy, Romania and the Czech Republic, who are all trying to tackle VAT fraud by extending the reverse charge scheme. Switzerland is going to amend its regulations in order to make more foreign entrepreneurs liable for VAT. In addition, Poland is now requesting more information from taxpayers.

New Federal Fiscal Court case law has ruled that the sale of a co-ownership share is now deemed to be a supply of goods rather than a supply of service. This new perspective will have a major impact on cross-border supplies due to the fact that the seller of a co-ownership share now bears the burden of proof. Although the judgment effectively changes the case law, the Federal Fiscal Court’s conclusion is not transferrable to cases involving joint ownership. The national civil law will be of decisive importance.