BLOMSTEIN has advised Siemens AG in its litigation against the main customs office Munich (HZA) in front of the Federal Supreme Tax Court.
The point at issue was an electricity tax order which the HZA had directed to Siemens AG, in which transformation and line losses in the power grid of the company had not been exempted from electricity tax.
The Court fully confirmed Siemens’ view supporting a broad interpretation of the notion of “power grid” in German electricity tax law, which means that transformation and line losses may not be taxed. The judgment will have an impact on all companies operating in Germany and consuming large amounts of electricity.
The BLOMSTEIN team consisted of partner Roland M. Stein, senior associate Eva-Maria Meister and associate Florian Wolf.