Here, we regularly inform you about new court decisions and other newsworthy developments in VAT matters.
No triangular transaction without reference to transfer of tax liability on invoice? Opinion: "Luxury Trust" (C-247/21)
In her opinion in the Austrian case "Luxury Trust Automobil GmbH" (C-247/21) of 14 July 2022, Advocate General Juliane Kokott argues that an intra-Community triangular transaction only exists if the middle trader indicates on the invoice that the tax liability is being transferred to the customer.
Penalty acquisition taxation in accordance with § 3d S. 2 of the German VAT Code - ECJ ruling "B." (C-696/20)
In a Polish case, the ECJ has taken a position on the additional intra-Community acquisition taxable if the acquirer uses a VAT ID different from that of the state where the movement of goods ends. Under certain conditions, this penalty acquisition taxation violates the neutrality principle and the proportionality principle.
Germany’s Federal Ministry of Finance presents a draft circular letter on the supply with transport of goods in chain supplies
Since 1 January 2020, in response to an amendment to the EU VAT Directive, the German VAT Code applies new rules in determining the supply of goods with transport/dispatch in chain supplies. Although the new EU law largely corresponds to the previously applicable German regulations, differences between the VAT Directive and the German VAT Code - especially in the wording - have led to lively discussions among experts. The BMF is adapting the VAT application decree and clarifying some open questions.
Watch out for irregularities to avoid losing the input VAT deduction or VAT exemption - BMF circular letter dated 15 June 2022
In a circular letter dated 15 June 2022, the German Federal Ministry of Finance (BMF) clarified section 25f of the German VAT Code (UStG), which provides for the denial of input VAT deduction and certain VAT exemptions if the entrepreneur knew or should have known that his or her turnover was involved in tax evasion or a similar offence. The BMF has very specific ideas about when an entrepreneur should be suspicious of something and take further steps.
Even if a reverse charge real estate purchase has not been declared, input VAT must be adjusted - BFH ruling V R 33/18
In its ruling of 1 February 2022 (published on 27 May 2022, V R 33/18), Germany’s Federal Fiscal Court (BFH) ruled that anyone who does not properly declare the taxable acquisition of real estate as a reverse charge transaction and neither enters the output VAT nor the input VAT in the preliminary VAT return must nevertheless make input VAT adjustments in accordance with § 15a of the German VAT Code (UStG).
No retroactive waiver of the VAT exemption on the sale of real estate - BNF ruling XI B 60/20
In its decision of 25 January 2022 (unofficially published on 2 June 2022), the German Federal Financial Court (BFH) reaffirmed that the waiver of the VAT exemption must be declared in the notarised real estate purchase contract. There is no second chance.
France builds golden bridge for undeclared distance sales conducted before 1 July 2021
Under the regulations in force until 30 June 2021, companies supplying B2C customers in the EU through distance sales had to register for VAT in the destination country if certain thresholds were exceeded and then pay VAT in that country. Companies often neglected to do this. The French tax authorities are now providing a way to rectify this omission without incurring penalties.
Alert: This opportunity is only for a limited time..
Ancillary services supplementing the hotel accommodation could be taxed at a reduced VAT rate - BFH ruling XI B 2/21
In Germany, services that involve only accommodation are subject to the reduced VAT rate of 7%. By contrast, breakfast, spa, and other supplies offered together with the accommodation have been subject to the standard tax rate until now, and the remuneration must be apportioned accordingly. This could be contrary to EU law. Germany’s Federal Fiscal Court (BFH) therefore granted a suspension of execution in such a case in its decision of 7 March 2022 (XI B 2/21).
Landlords and condominium owners´ associations should not be considered taxpayers for telecommunications services received
In a letter dated 2 May 2022, the German Federal Ministry of Finance (BMF) exempts telecommunications services provided to landlords and condominium owners' associations from the reverse charge procedure. This severely strains the law’s wording.
Timely submission of the EC sales list - BMF circular letter dated 20 May 2022
The EU has tightened the thumbscrews with the introduction of the Quick Fixes 2020: The intra-Community supply of goods is now only VAT-exempt if the supplier correctly reports the turnover in the EC sales list. Since then, the ongoing issue has been what happens if the turnover is not reported on time in the EC sales list. The Federal Ministry of Finance (BMF) is making a course correction here with a circular letter dated 20 May 2022.
10 June | 16:00 – 18:00 CET
The e-commerce sector has been growing rapidly in the last few years, entirely changing the way business is transacted. This growth comes with new rules and regulations, including the new VAT rules for online cross-border sales of goods and services. Set to come into effect on 1 July 2021, these new rules have the purpose of strengthening the European internal market and...
This website uses cookies.
Some of these cookies are necessary, while others help us analyse our traffic, serve advertising and deliver customised experiences for you.
For more information on the cookies we use, please refer to our Privacy Policy.
