At the end of October 2015, the EU Commission rejected an application to generally apply the reverse charge scheme to all supplies valued at more than EUR 10,000. Thus, some member states are still trying to extend the reverse charge scheme’s scope to the extent permitted by the EU VAT Directive. Austria has developed its regulations as regards chain transactions and triangular transactions and with respect to travel service supplies.

The settlement of past property developer cases is in full swing. For the first time, the Federal Fiscal Court comments on the unconstitutionality of sec 27 para 19 of the German VAT Act. The Court considers it to be possible and grants the supplier of property development services suspension of enforcement. The tax court in Lower Saxony has just denied the unconstitutionality in a recently published principle proceeding. There is also a first civil-law decision available. It confirms the supplier’s civil claim vis a vis the property developer.

According to the Federal Fiscal Court, it should be possible, under certain conditions, to qualify partnerships as controlled companies in a VAT group. This has not previously been possible under national law. However, much will remain the same. The Federal Fiscal Court’s ruling has fallen below expectations. It is unfortunate, that the scope of VAT groups has not been further expanded. It is positive, however, that the criterion of organizational integration has not been intensified. The undefined requirement of “institutionally ensured possibility of intervention“ is retained.