According to the ECJ, loss compensation payments for public transport are not subject to VAT. With this judgment, the ECJ also confirms the position of the German Federal Fiscal Court, according to which such grants are not generally subject to VAT. The special bonus: the input VAT deduction is not affected by the compensation payment either. We now have a little more legal certainty and clarity on the subject of grants.

Since the beginning of the year, the Federal Fiscal Court (BFH) and the fiscal courts have made important decisions in energy tax and electricity tax law that could have practical consequences for the companies affected. In particular, questions surrounding the supplier status remain relevant. The BFH dealt with the supplier status of large-scale plant operators, and the Mecklenburg-Western Pomerania Fiscal Court with the supplier status in tenancy agreements. In energy tax law, the Hamburg Fiscal Court ruled on the tax liability of the authorised storer.

The central settlement procedure, with its numerous service relationships, was subject to a far-reaching change in case law in 2014. This ruling was eagerly awaited because it could have turned back the clock. That was what the court of first instance intended. However, the Federal Fiscal Court has confirmed its now well-established position. On the one hand, this creates legal clarity, but on the other hand, it may also necessitate urgent adjustments. Central settlement providers, who have not implemented the change in case law because they did not consider it applicable to their case, are still reducing their VAT, possibly unlawfully. They must immediately review the VAT treatment of their service relationships and, if necessary, adjust their account settlements.