The EU is paving the way for VAT into the digital future. The proposal for a directive to comprehensively amend the EU VAT Directive ‘with regard to VAT rules for the digital age’ was unanimously adopted today, 5 November 2024. It contains regulations for the platform economy, regarding reporting obligations and electronic invoicing as well as for a single EU VAT registration. In this newsletter, we would first like to give you a brief overview. Over the next few days, we will inform you in detail about the various changes in further newsletters.

The transition of the Federal Republic of Germany towards a power supply system based on renewable energy sources is well underway. In order to guarantee the power supply, grid operators have to ensure grid stability. To prevent regional grid congestion, they may, at short notice, adjust the activity of various power plants, a measure known as Redispatch 2.0. Affected facilities receive a financial compensation and/or an adjustment in the balance sheet. In its letter dated 26 August 2024 the Federal Ministry of Finance (BMF) addresses the question of when this compensation and/ or adjustment is considered to be not subject to VAT. The grace period was only granted until 31 October 2024.

Another piece of the legal certainty puzzle for e-charging has now emerged: After the ECJ ruled last year that charging is a supply of goods, it has now confirmed the existence of a reseller model in a three-person relationship. However, the flip side of the coin is the multitude of follow-up questions that arise for e-mobility operators (EMP) from the ECJ ruling.