In a recent decision, the Supreme Tax Court stated that, for reasons of equity, a different assessment of inheritance tax is possible in the absence of enrichment, provided it is established that the recipient was not otherwise enriched because he or she was entitled to claims for restitution or compensation for lost value.
In its judgment of 9 April 2026 – VI R 1/24, the Supreme Tax Court ruled that, under the Agreement for the Avoidance of Double Taxation concluded between the Republic of Cyprus and the Federal Republic of Germany (Cyprus DTA 2011), Germany had, as the state of residence, the right to tax the employment income of a German resident employee, who was working on board a vessel engaged in domestic maritime transport. Furthermore, it clarified that a ‘vessel engaged in inland waterway transport’ within the meaning of the Cyprus DTA 2011 is only one that operates exclusively on inland waterways situated within the mainland.
In its decision of today, the General Court held that the VAT exemption for “the management of credit by the person granting it” under Article 135(1)(b) of the VAT Directive does not apply in a case where the credit is sold to a third company and whilst the management of that credit is retained by the seller.
The Bundesrat has tabled a draft bill (21/6377) aimed at strengthening asset recovery in relation to Cum/Ex short-selling transactions and all those involved. The aim is to clarify that confiscation from a third party is unambiguously possible even if that party received the proceeds ‘for the offence’ as an “advanced payment”.
In a case concerning VAT for services supplied electronically by a German GmbH through an app store operated by an Irish company, the Supreme Tax Court held that the place of supply of such services to the customers (non-taxable persons) was in Ireland and - pending further facts still to be ascertained by the lower tax court in a second hearing - no German VAT arises.
In a most recently published decision, the Supreme Tax Court commented on Section 8b (3) Corporation Tax Act which deals with a prohibition on deductions (such as the write-off in case of impairment of loans) in case of tax-exempt dividend income received by a corporation from shares held in another company. In addition, the court held that the disallowance is not applicable where a natural person is a related party to the company.
At the plenary session on 12 June 2026, the Bundesrat unanimously approved amendments to the Tax Consultancy Act that the Bundestag had only passed the previous evening.
In its decision today, the European Court of Justice held that inclusion in a U.S. sanctions list is not, in itself, sufficient grounds to refuse to open a bank account. Such a denial may only be made following a case-by-case assessment by the bank regarding the risk of money laundering and terrorist financing.
In a Dutch case, the General Court of the European Union decided that exemption for services provided by a member of a VAT group in the field of health care and social care can only be granted if the relevant group member itself meets the legal requirements for VAT exemption.
The OECD Committee on Fiscal Affairs has been working to update and modernize the existing provisions of selected chapters in the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations which provides guidance on intra-group services. On 1 June 2026 a public consultation on proposed revisions to Chapter VII of the OECD Transfer Pricing Guidelines was launched.
The European Commission decided to open an infringement procedure by sending a letter of formal notice to Germany for failing to comply with EU rules on freedom of establishment.
In a most recently published decision, the Supreme Tax Court held that the interest rate of 5.5% applicable under Section 14(1) Sentence 3 of the Valuation Act (regarding lifetime usufructs and annuities) does not violate the principle of equality of Article 3(1) Basic Law when used to value a monthly lifetime annuity of the beneficiary for gift tax purposes.
In a request for a preliminary ruling from Portugal the ECJ held, that the national legislation which provides taxation of a transaction involving the formation of a capital company the share capital of which is fully paid up by means of shares held in other companies owning immovable property, and which receives as consideration the entire share capital of the company thus formed contravenes the Directive 2008/7/EC concerning indirect taxes on the raising of capital.
The Düsseldorf Tax Court had to decide whether, during the years in dispute from 2012 to 2014, losses stemming from the lease of an aircraft could still be considered for tax purposes after the aircraft was sold. The key point was the question whether there was an intention to generate income on the part of the plaintiffs. Unlike the tax office, the tax court ruled in the plaintiff's favor.
In a decision of today the General Court of the EU annuls the decision of EU Commission designating Meta as a gatekeeper as regards Marketplace. At the same time, it maintains Meta’s gatekeeper designation for its interpersonal communications service Messenger.
Under the new Directive on the fight against corruption, more uniform anti-corruption rules took effect across the EU on 31 May 2026. The Directive introduces modern rules to improve the prevention, detection, and prosecution of corruption throughout the EU.
On 26 May 2026, the Federal Ministry of Finance (MOF) circulated a draft bill for the Finance Act 2026 to industry associations and invited comments by 12 June 2026. The key legislative changes relevant to businesses are summarised below.
As a rule, parties to a legal proceeding are not entitled to compensation for the excessive length of a fiscal court trial if the parties have agreed to adjourn the court proceedings in light of an appeal already pending before the Supreme Tax Court in a similar case.
In a most recently published decision, the Supreme Tax Court held that a disability compensation received by a former member of the U.S. Armed Forces for an injury suffered in the line of duty is tax-exempt under Section 3 No. 6 Income Tax Act.
