The Saarbrucken Local Tax Court has decided that under the provisions implemented in the German VAT law, non-taxable persons cannot form part of a VAT group (decision 1 K 1480/12 from 18 November 2014). In the case of EU Commission against Ireland, the Court of Justice of the European Union (CJEU) found that according to the wording of the VAT Directive, Member States are allowed to include non-taxable persons in a VAT group. The German Local Court found that the CJEU merely decided that Member States are indeed free to implement the VAT directive in a way that allows non-taxable persons in a VAT group. However, Member States may also decide to expressly exclude non-taxable persons, because the implementation of VAT grouping rules is optional and the particulars of the according provisions are within the Member States' discretion. In this respect, the Local Fiscal Court argues that exclusion of non-taxable persons may be seen as an acceptable measure to prevent VAT fraud, which is expressly allowed under the VAT Directive. The case might be further appealed.