When selling 4 cars makes a dealer…

The taxpayer buys 5 luxury cars and sells 6 over a 4-year period.

The tax authorities (VAT) see this as entrepreneurial activity in the sense of VAT.

The federal judges note that the taxpayer carried out (i) a professional or commercial activity, (ii) aimed at the sustainable realisation of revenue through services, (iii) exercised independently and (iv) perceived as such by outsiders... which the taxpayer does not dispute (sic!).

The taxpayer is clinging to European case law, which the Federal Court of Justice took inspiration from in a previous case.

Federal judges recall that European case law is a source of inspiration that does not bind judges.

The judgment is in German.

TAF, judgment A-3867/2025, of 24 November 2025