In a most recent judgment, the Supreme Tax Court held that a method for allocating a standardized total price for a certain product that results in a proportionate sales price for a combination of goods (here: „economical menu” or “best value meal“ in the „system gastronomy“) that is higher than the individual sales price is not appropriate.
When using a food-court in a shopping mall the services of a fast-food provider may not be a delivery of food (for which the reduced VAT rate is applicable) but rather a service subject to the standard VAT rate if - as the Supreme Tax Court points out in a most current decision - it is evident from the perspective of an average consumer that the provider of the food has a facility at his disposal on the nearby premises. This, e.g., may be the case if a tray is provided for transporting the purchased food to a consumption facility located in the food-court.
An additional estimate by the tax office because of a breach of record-keeping obligations is not possible if the taxpayer (a sole trader in the food and non-food sector) was relying on the simplified record-keeping procedure granted to him by the Federal Ministry of Finance. The main issue in the case of dispute was whether the ministerial circular to that effect covers not only food but also non-food items.
On 14 May 2024 the Council reached an agreement (general approach) on safer and faster procedures to obtain double taxation relief, which will help boost cross-border investment and help fight tax abuse.
The ECJ has held that the sale of prepared hot and cold snacks from stalls and stands for immediate consumption is taxable at the reduced rate as the sale of foodstuffs. Party service deliveries, by contrast, are services taxable at the standard rate.
In the course of the Tax Amendment Act 2025 a reduction of VAT for restaurant and catering services, with the exception of the sale of beverages, to seven per cent was introduced from 1 January 2026 (Section 12 (2) No. 15 of the Value Added Tax Act). The Federal Ministry of Finance (MoF) has recently issued a brief decree as to specific aspects of the new rule.
In a decision published today the Third Chamber of the First Senate of the Federal Constitutional Court (“FCC”) overturned various tax court decisions concerning the obligation to use the special electronic tax advisor mailbox (known as “beSt”).
Unlocking the full potential of the Single Market for Europe's entrepreneurs: On 18 March 2026 the European Commission presented its proposal for EU Inc., which is an optional, digital-by-default European corporate framework. It will make it easier for businesses to start, operate and grow across the EU – incentivizing them to stay in Europe, and encourage those who once looked elsewhere to return.
In a most recent judgment, the European Court of Justice held, that the German legislation which excludes the reduced VAT rate applicable to short-term accommodation services provided in hotels and similar establishments which are not directly used for that accommodation is not in breach of EU law. Those rules must, however, be applied to concrete and specific aspects of the categories of accommodation services referred to in point (12) of Annex III of the VAT Directive and ensure that the principle of fiscal neutrality is preserved.
On 28 April 2025 the EU Commission presented its plan to modernize EU lawmaking, ensuring that laws are clearer, simpler, more efficiently enforced, based on solid evidence and better aligned with the needs of citizens and businesses.
The European Union and Singapore have taken a significant step forward in their bilateral trade relations with the signing of a landmark Digital Trade Agreement. It has been designed to improve consumer protection, facilitate trustworthy cross-border data flows, provide legal certainty for companies wishing to engage in cross-border digital trade, and remove unjustified barriers to digital trade. In its current press release the EU Commission provides further information.
On 19 June 2023 the European Commission proposed new rules to make withholding tax procedures in the EU more efficient and secure for investors, financial intermediaries (e.g., banks) and Member State tax administrations. This initiative is aimed to promote fairer taxation, fight tax fraud, and support cross-border investment throughout the EU.
In two press statements the European Council approved the conclusions on a strategy for the EU’s engagement in global digital affairs and updates in the field of taxation of cooperation agreements with Switzerland, Liechtenstein, Andorra, Monaco and San Marino
The German federal government has adopted a draft bill to modernize German cooperative law. According to a press release issued by the Federal Ministry of Justice and Consumer Protection (BMJV), the draft bill adopted on July 15, 2026, is intended to accelerate the formation of cooperatives, further promote digitalization, and strengthen safeguards against the misuse of the cooperative legal form.
In particular, the draft bill provides for the following key changes:
In a recently published judgment, the Supreme Tax Court decided that contributions made by parents to a support association for their children’s private school may, under certain circumstances, be treated as deductible school tuition for income tax purposes. However, expenses for lodging, care, and meals are not eligible.
The EU is planning a comprehensive reform of its customs legislation that will fundamentally change the way goods are imported and exported in the single market. The necessary steps were initiated in 2023. One of the most important changes is the replacement of the current status of Authorized Economic Operator (AEO) with the new designation of Trust & Check Trader (T&C Trader).
On 27 February 2023 the European Commission and the Government of the United Kingdom reached a political agreement in principle on the Windsor Framework. This constitutes a comprehensive set of joint solutions aimed at addressing, in a definitive way, the practical challenges faced by citizens and businesses in Northern Ireland, thereby providing them with lasting certainty and predictability.
