The legislator is serious about the draft 2025 Tax Amendment Act: eating out is set to become cheaper again, as from 1 January 2026. The (re)introduction of the reduced VAT rate is planned, at least for the supply of restaurant and catering services.

If import duties are levied in violation of Union law, the main customs office is obliged to refund additional interest. The interest claim already exists in cases of pure errors in the application of the law. The German Federal Fiscal Court consolidates its jurisprudence in this regard and clarifies that the legal issues surrounding the interest claim have, in principle, been settled.

In its eagerly awaited judgment in the Arcomet Towercranes case, the ECJ clarifies when compensation payments, aimed at adjusting profit margins to the arm’s length principle, may constitute remuneration for a taxable supply. The Court’s classification could have implications for many businesses. Multinational groups should review how transfer pricing adjustments currently interact with VAT and whether the judgment gives rise to any need for action. The ECJ’s findings on the uncertain nature of the provision of payment and the need for further evidence to support input VAT deduction are also relevant beyond the context of transfer pricing.