On 25 August 2015 (Ref. 1 K 2519/10), the Hessian tax court expressed its disagreement with the tax authority’s opinion regarding supplies via German call-off stock. The tax court decided that supplies via call-off-stock can be intra-Community supplies if certain conditions are met. In particular, if the customer raised binding orders prior to the beginning of the transport to the consignment stock. According to the tax court, it is irrelevant that the right to dispose of the goods was transferred in Germany. The tax court has appealed the judgment (Az. V R 31/15). Therefore, a decision by the Federal Fiscal Court on the VAT treatment of supplies from the EU, via German consignment stock, is ultimately to be expected.

The ECJ has ruled that legal persons governed by private law may be deemed as being bodies governed by public law. This comes as something of a surprise, as the Federal Fiscal Court has previously held a different view on this matter. The new case law is especially important to so-called “entrusted“ taxable persons. The national regulation sec. 2 para. 3 German VAT Act and sec. 2b German VAT Act must now therefore be interpreted in conformity with the directive.

Once again, the fight against loss of tax revenue is the predominant issue for the coming year. Hungary and the Czech Republic are tightening reporting obligations, Romania is extending the reverse charge scheme and France will be the first EU member state to require taxable persons to use the Direct Debit Scheme. Additionally, some countries are focusing on stimulating the economy. Romania is hoping to achieve this aim by dramatically reducing its VAT rates. Italy is delaying the intended increase in its VAT rates. Meanwhile, Austria and Norway are planning to raise revenue by increasing their VAT rates.