The application of the margin scheme, in accordance with sec. 25a of the German VAT Act, is subject to strict requirements. Its application therefore involves considerable risks. Recent court decisions in fields such as used car sales, furniture upcycling, and online goods sales demonstrate this to be the case. Resellers wishing to apply the margin scheme should not blindly rely on information from upstream suppliers. The European Public Prosecutor’s Office is currently conducting criminal investigations into this issue in the motor vehicle trade sector.

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.