News from IVA members

10 May 2018
Germany - Applicable Law on Taxation of Travel Services

 Companies receiving travel services have a choice as to whether to apply sec. 25 of the German VAT Act (which violates EU law) or art. 306 ff. of the EU VAT Directive. The German Federal Fiscal Court confirmed this in its judgment of 13.12.2017, which was published on 02.05.2018 (XI R 4/16). This allows companies to choose the most preferable taxation scheme, for themselves and for their customers, who ultimately have to bear the VAT burden. As a result, companies have a maximum degree of flexibility and can theoretically generate non-taxed turnover. This remains applicable until the legislator reacts and adapts sec. 25 of the German VAT Act...

10 May 2018
EU Commission draws up a proposal for a new “digital service tax”

In the EU Commission’s view, the existing corporate tax law has failed when it comes to the taxation of revenue generated by the digital economy. An interim tax of 3% on specific online revenues should be levied until the OECD is able to come forward with a long term global solution. The Commission proposes that companies with a world-wide revenue exceeding EUR 750 million would be affected. The placing of online advertising, the facilitation of online sales portals and the sale of user data would all be taxed. Thus, the digital service tax would be focused on the USA’s internet giants, which represent more than 50% of the businesses affected.

12 April 2018
UK - VAT after Brexit – Installed Goods

Assuming a deal for its on-going trading relationships with the EU, cannot be done, the UK will, from the end of the ‘transitional period’ at the latest (31 December 2020) be outside of the Single Market and the Customs Union...

12 April 2018
Switzerland - Radio and TV fees

The Swiss people firmly rejected the ‘No Billag’ initiative on 4 March 2018. As a result, all VAT register-listed businesses with a global turnover of more than CHF 500,000 will have to pay a business licence fee, regardless of whether or how much TV and radio they actually receive...

12 April 2018
Germany - VAT treatment of Bitcoin

On 27 February 2018, the German Ministry of Finance has published a guidance on VAT treatment of activities related to virtual currencies. Reference is made to the ECJ decision in Hedquist (C-264/14, dated 22 October 2015). However, the MoF has used the opportunity to express its opinion with regard to other relevant aspects.

12 April 2018
Germany - Input VAT deduction in the case of an invoice showing VAT subsequently being issued

Where a taxable person subsequently invoices VAT on invoices for supplies, which previously he had treated as being VAT exempt, this does not result in the recipient’s input VAT deduction, by means of a VAT refund, being disallowed. Any possible limitation periods are irrelevant in cases where the recipient was unable to claim the refund in time, due to the fact that he did not have an invoice and was unaware of the VAT liability (ECJ, decision of 21.03.2018 - C- 533/16 Volkswagen AG). Here, substantive law prevails over procedural law.

15 March 2018
Spain - Intrastat System

Please be informed that Order HFP / 36/2018, of January 18, establishing certain provisions related to the Intrastat System in order to unify and adapt the national Intrastat to the EU’s regulations, entered into force on March 1, 2018.

15 March 2018
Hungary – Electronic Tax Administration

The Hungarian tax authorities have restructured the method of electronic communication with the clients. Until now foreign companies with Hungarian VAT registrations could file VAT returns in paper form unless they had to file European Sales and Purchase Listings (ESPL). According to the new rules all companies having monthly VAT filing liabilities have to file VAT returns electronically.

15 March 2018
Germany – VAT exemption for operation of ATMs

Many banks outsource single tasks to external providers. Banks are only partly entitled to deduct input VAT. Therefore, banks are interested in the fact that the outsourced services are VAT exempt. The ECJ has already decided that, when purchasing cinema tickets, the processing of debit or credit card payments is not VAT exempt. Now, the German Federal Fiscal Court would like to know if this also applies to the operation of ATMs.

15 March 2018
Germany – VAT exemption for the management of investment funds

As from 01.01.2018, the new version of sec 4 no 8 lit. h of the German VAT Act applies to the VAT exemption for the management of investment funds. According to this new legal position, the scope of the VAT exemption is broader than it has previously been. In particular, the management of Alternative Investment Funds (AIF) could be subject to changes. The precise limits are, however, currently unclear. Investment fund managers should keep an eye on the implications of the broader VAT exemption on their input VAT deduction.

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News from the Board

Communique about the IVA activities in 2018

You can find the document here.

News from IVA members

Spain–Notice about not reaching a BREXIT Agreement

Please be informed that the Spanish authorities have issued a notice informing about the consequences as of March 30, 2019 of not reaching a BREXIT agreement that includes a transitory period, namely...

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News from EC

News from Accountancy Europe - January 2019

European Commission

Commission proposes legislative amendments to improve VAT for e-commerce and anti-fraud measures...

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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.