News from Accountancy Europe September 2018

International

Luxembourg Introduces New VAT Group Regime - 9 August 2018

Luxembourg has adopted a new VAT grouping regime (article 11 of Directive 2006/112/EC refers). It replaces a previous regime which was restricted to entities only engaged in activities in the public interest. Luxembourg’s move aims to rectify 2017 rulings from the European Court of Justice (CJEU), which excluded financial and insurance companies from the scope of the public interest definition.

Link: https://www.tax-news.com/news/Luxembourg_Introduces_New_VAT_Group_Regime____86882.html

MEP Questions & Answers

The applicable VAT tariff for mind sport - 20 August 2018 

The European Commission has replied to a question asked by the MEP Esther de Lange (EPP/NLD) with regard to VAT applicable to mind sport.

In her question, Ms. de Lange refers to a ruling by the Court of Justice of the EU (CJEU) which forbade activities such as duplicate bridge from being qualified as “sport”. The court apparently based its argument on the observation that sport requires some level of physical activity. She therefore asks the Commission whether it would establish a EU definition of sport and include mind sport into this definition, and whether bridge and all mind sport will no longer be applicable for a 0% VAT rate.

In his reply, Commissioner Navracsics (education, culture, youth and sport) states that the Commission usually refers to the definition of sport established by the Council of Europe, which includes the notion of physical activity.

Even though the CJEU ruling in question excludes the application of sport label to duplicate bridge, Member states may still use the concept of “cultural services” within the meaning of the VAT directive for it. He also maintains that the recently proposed VAT rates reform, once (and if) adopted, would grant Member states the possibility of applying a reduced or zero rate to tournament or club membership fees for duplicate bridge.

 

Link: http://www.europarl.europa.eu/sides/getAllAnswers.do?reference=E-2018-003581&language=EN

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Communique about the IVA activities in 2018

You can find the document here.

News from IVA members

Federal Fiscal Court: Postal address on invoice permitted – no bad faith despite domicile address

In an invoice issued for the purpose of input VAT deduction, the supplier’s address is not required to be the place of his or her economic activity. This was decided by the German Federal Fiscal Court in two judgments of 21 June 2018 (V R 25/15 and V R 28/16). The German Federal Fiscal Court thus follows the EUCJ in the German rulings in Geissel and Butin – C-374/16 and C-375/16...

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News from EC

News from Accountancy Europe September 2018

Luxembourg has adopted a new VAT grouping regime (article 11 of Directive 2006/112/EC refers). It replaces a previous regime which was restricted to entities only engaged in activities in the public interest...

Read more ...

Disclaimer:  The information contained in the present page is general and does not constitute legal advice. Before taking any decision or action on the above information you should take the appropriate professional advice.