Although the supply of goods and services in exchange for payment is generally seen as the textbook example for VAT relevant transactions, economic reality provides us with a broader picture: For example, in an era of increasing digitalization, sponsorships might be granted in return for advertising placements on a social media account. However, it remains unclear how to determine the tax base for VAT purposes. In application of the existing CJEU case law, the German Federal Fiscal Court (BFH) has performed a complete reversal in its opinion, now generally considering the supplier’s expenses as the tax base in case of exchange transactions. In the following, the BFH decision is examined with regard to the wording and purpose of the VAT directive as well as CJEU case law.