If a person overstates VAT in an invoice issued to a final consumer, no VAT liability arises under sec. 14c of the German VAT Act / Art. 203 of the EU VAT Directive. So far, nothing new. However, in its judgment of 1 August 2025 (P-GmbH II – C-794/23), the ECJ clarified its case law in this regard: Whether a VAT liability arises due to the issuance of an invoice must always be assessed separately for each individual invoice. The term "final consumer" must be interpreted narrowly. Where invoices are issued to both final consumers and taxable persons, the ratio may, in cases of doubt, be estimated. The ECJ sets out relevant criteria for such estimation. The German tax authorities have, to date, fallen significantly short of these standards.