As from 1 January 2023, the German tax authorities no longer treat guarantee commitments against payment as subject to VAT but instead as subject to Insurance Premium Tax. The tax authorities developed this perspective following the Federal Fiscal Court’s ruling of 14 November 2018 (XI R 16/17), which has resulted in many uncertainties. Recently, new interpretive FAQs were published by the tax authorities. While some statements surprise, other issues remain unclear. Unfortunately, the FAQs do not provide the legal certainty many had hoped for.