Overview
Romania - EU authorization to increase the VAT registration threshold
EU authorization to increase the VAT registration threshold By its decision of March 26, 2012 (No. 2012/181), the EU Council authorized Romania to increase its VAT registration threshold from the equivalent in national currency of EUR 35,000 to the equivalent of EUR 65,000. A proposal to... read more read more
Bulgaria - ECJ decision on time of input VAT deduction with respect to immovable property allocated
ECJ decision on time of input VAT deduction with respect to immovable property allocated to business assets In a similar case (see AG opinion above in case C-334/10), on March 22, 2012, the ECJ decided on in the case of Klub OOD v. Direktor na Direktsia "Obzhalvane i upravlenie na... read more read more
Netherlands - AG opinion on deductibility of input VAT on expenses made for temporary occupation
AG opinion on deductibility of input VAT on expenses made for temporary private use of a capital item On March 1, 2012, the AG Juliane Kokott of the ECJ gave her opinion in X. v. The Netherlands (C-334/10). The Supreme Court had requested a preliminary ruling from the ECJ on July 12, 2010.... read more read more
Poland - ECJ decision on input VAT on preliminary expenditures
ECJ decision on input VAT on preliminary expenditures incurred by individuals prior to registration of partnership is deductible On March 1, 2012, the ECJ gave its decision in the case of Kopalnia Odkrywkowa Polski Trawertyn P. Granatowicz, M. Wąsiewicz spolka jawna (general... read more read more
Belgium - Constitutional court does not nullify treatment of notaries and bailiffs as taxable person
Constitutional court does not nullify treatment of notaries and bailiffs as taxable persons for VAT purposes On March 8, 2012, the Constitutional Court gave its decision on the annulment of the amendment of Article 44(1)(1) of the Belgian VAT Act (Case 5292) as a result of which notaries... read more read more
Netherlands - Court of Appeal the Hague gives final decision in Don Bosco case (C-461/08)
Court of Appeal the Hague gives final decision in Don Bosco case (C-461/08) On March 2, 2012, the Court of Appeal of The Hague (Case BK-11/00384) gave its final decision in the ECJ case Don Bosco Onroerend Goed v. Staatssecretaris van Financiën (Case C-461/08). In this case the ECJ... read more read more
Spain - Permanent establishment from a VAT perspective
Permanent establishment from a VAT perspective The Spanish VAT authorities have recently published several public consultations concerning different questions related to the interpretation of the criteria for creating a permanent establishment in Spain. The new interpretation seems to be a... read more read more
Czech Republic - VAT rates increase
VAT rates increase On April 10, 2012, the government coalition agreed on several tax changes to increase state revenues in 2013-2015. To become effective, the changes must be approved by both chambers of the parliament, and signed by the president. The main VAT change would be a VAT rates... read more read more
Greece - Ministry of Finance publishes decision on faster VAT refund procedure
Ministry of Finance publishes decision on faster VAT refund procedure On April 2, 2012, the Greek Ministry of Finance published a decision regarding the modernization of the VAT refund procedure for taxable persons. Taxable persons may apply online (using the Ministry's interface) for a VAT... read more read more
Greece - Reform of tax system, proposal announced
Reform of tax system, proposal announced On March 29, 2012, the Committee for the drafting of the national tax system completed its mandate for the proposal for a new national tax system for Greece. The Proposal will be included in a draft law to be submitted to the Parliament by the end of... read more read more
Germany - Revised rules concerning the documentary evidence for intra-Community supplies
Revised rules concerning the documentary evidence for the zero-rating of the intra-Community supplies On March 28, 2012, the German Federal Ministry of Finance published a revised draft of the circular letter on the new rules concerning the documentary evidence for the zero-rating of the... read more read more
Turkey - VAT rate reduced on raw materials for pharmacy products
VAT rate reduced on raw materials for pharmacy products On March 24, 2012, the Official Gazette published Decree No. 2012/2931, of the Council of Ministers, which reduces the VAT rate on the supply of raw materials for pharmacy products from 25% to 8% VAT rate. The new rate applies as of... read more read more
Portugal - Autonomous Region of Madeira, VAT rates and excise duties increased
Autonomous Region of Madeira – VAT rates and excise duties increased On March 22, 2012, the Parliament approved Law Proposal 48/XII, which amended the VAT and excise duties legislation applicable in the Autonomous Region of Madeira. The amendments will be effective as of April 1,... read more read more
Finland - Government announces VAT rate increase
Government announces VAT rate increase On March 22, 2012, the Finnish Government published its tax measures for the years between 2013 and 2016. They have announced a VAT rate increase (for both the reduced as the standard rate) of 1%. read more read more
United Kingdom - Changes in VAT as of April 1, 2012
Changes in VAT as of April 1, 2012 As of April 1, 2012, the VAT thresholds will be as follows: • the VAT registration threshold will be increased from GBP 73,000 to GBP 77,000 • the VAT deregistration threshold will be increased from GBP 71,000 to GBP 75,000... read more read more
Spain - Regulation on taxation of time-sharing agreements
Regulation on taxation of time-sharing agreements On March 18, 2012, the Royal Decree-Law 8/2012 of March 16, 2012, regulating time-sharing agreements and other vacation contracts between entrepreneurs and consumers came into force. Immovable property subject to time-sharing contracts... read more read more
Estonia - Amendments to the VAT Act adopted
Amendments to the VAT Act adopted On March 8, 2012, the parliament adopted amendments to the VAT Act , which implement EU Directives 2008/8 and 2010/45, introduce reverse charge mechanism in respect of transactions with gold, and changes to VAT treatment of excise goods in excise... read more read more
Germany - Draft Bill for Annual Tax Act 2013 published by Ministry of Finance
Draft Bill for Annual Tax Act 2013 published by Ministry of Finance On March 5, 2012, the German Ministry of Finance has published the draft Bill for Annual Tax Act 2013 (“Jahressteuergesetz”). The following amendments to the “place of supply of services”-VAT rules... read more read more
Slovenia - amendments to VAT law proposed based on infringement procedure
Amendments to VAT law proposed based on infringement procedure On March 6, 2012, the Slovenian Ministry of Finance proposed amendments to the VAT Law following the infringement procedure of the EU Commission (Infringement no. 2011/4182). The Commission considers that Slovenia failed to... read more read more
Hungary - new guidelines including requirements regarding tax audits of VAT registered persons
New Guidelines including requirements regarding tax audits of VAT registered persons The National Tax and Customs Authority’s President has issued new Guidelines on facilitating tax audits carried out before tax refunds are disbursed. The Guidelines apply to non-resident taxpayers (i.e.... read more read more
Hungary - non-deductibility of VAT if there is no document proving ownership
Preliminary ruling requested from the ECJ on non-deductibility of VAT if taxable person has no document proving that it owned the sold product. On 22 February 2011, the Baranya Megyei Country Court (Baranya Megyei Biróság) requested a preliminary ruling from the Court of... read more read more
Hungary - restriction or prohibition of the right to deduct input VAT
Preliminary ruling requested from the ECJ on the restriction or prohibition of the right to deduct input VAT in Hungary. On 23 March 2011, the Jász-Nagykun-Szolnok County Courtrequested a preliminary ruling from the Court of Justice of the European Union (ECJ) in Péter... read more read more
Hungary - VAT refund rules incompatible with the EU VAT Directive
ECJ: Advocate General finds Hungarian VAT refund rules incompatible with the EU VAT Directive. On 26 May 2011, Advocate General (AG) Yves Bot of the Court of Justice of the European Union (ECJ) delivered his opinion in the case of European Commission v. Republic of Hungary (Case C-274/10).... read more read more
Austria - Austria to amend reduced VAT rate
ECJ: Austria to amend reduced VAT rate to the supply, importations and intra-Community acquisitions of horses. On 12 May 2011, the Court of Justice of the European Union (ECJ) gave its decision in Commission v. Austria (Case C-441/09). The case was referred to the ECJ by the European... read more read more
Ireland - Finance Bill 2011 published
Second reduced VAT rate of 9% in Ireland. The Finance (No. 2) Bill 2011 was published on 19 May 2011. The Bill reflects the tax measures announced in the Jobs Initiative and contains 4 sections of substance: Section 3 amends the VAT Consolidation Act 2010 to provide for a second... read more read more
Ireland - Mandatory e-filing
Mandatory e-filing in Ireland The requirement to pay and file taxes electronically (efiling) in a number of phases which began in 2009. Since then, it has become mandatory for a range of taxpayers to make certain returns and payments online: Phase 1 - Government departments/bodies and... read more read more
Czech Republic - ECJ Action against Czech Republic
ECJ: Action against Czech Republic for allowing non-taxable persons to join VAT group On 3 March 2011, the European Commission referred the Czech Republic to the Court of Justice of the European Union (ECJ) in European Commission v. Czech Republic (Case C-109/11) for allowing non-taxable... read more read more
Norway - Simplified VAT scheme for electronic services
Simplified VAT scheme for electronic services presented to parliament . On 13 May 2011, the Government presented a law proposal introducing a simplified VAT scheme for non-established vendors supplying electronic services to consumers in Norway (the Scheme) to the parliament. The Scheme... read more read more
Romania - Reverse charge for domestic supply of certain products
Reverse charge mechanism for domestic supply of certain products approved by European Commission . The Romanian Ministry of Finance announced on a press release that the European Commission, on 4 May 2011, has approved the introduction of reverse charge mechanism for domestic supply of the... read more read more
Bulgaria - Bulgarian rules on refund of VAT
ECJ: Bulgarian rules on refund of VAT – time limits and default interest On 12 May 2011, the Court of Justice of the European Union (ECJ) gave its decision in the case of Enel Maritsa Iztok 3 AD v. Direktor "Obzhalvane i upravlenie na izpalnenieto" NAP (Case C-107/10). The... read more read more
Germany - ECJ Decision on application reduced rate
ECJ: Application of German reduced VAT rate on horses incompatible with EU VAT Directive On 12 May 2011, the Court of Justice of the European Union (ECJ) gave its decision in Commission v. Germany (C-453/09). The case was referred to the ECJ by the European Commission on 19 November 2009.... read more read more
Ireland - second reduced rate to be introduced
VAT: second reduced rate to be introduced. A second reduced rate of VAT will be introduced on 1 July 2011. This rate will be set at 9%, and will apply from 1 July 2011 to 31 December 2013. Legislation to give effect to the new rate will be included in the forthcoming Finance (No. 2) Bill... read more read more
Netherlands - Supreme Court requests preliminary ruling
Supreme Court requests preliminary ruling from ECJ on VAT exemption for transactions in shares and other securities by company active in the real estate sector. On 22 April 2011, the Dutch Supreme Court (Hoge Raad) requested a preliminary ruling from the Court of Justice of the European... read more read more
European Union - Commission hosts conference on the future of VAT
European Commission hosts conference on the future of VAT. On 6 May 2011, EU Commissioner Šemeta in charge of Taxation, opened a conference on the "Green Paper on the future of VAT – Towards a simpler, more robust and efficient VAT system" in Milan. This conference is organized... read more read more
Bulgaria - Preliminary ruling requested from ECJ
Preliminary ruling requested from ECJ on time when a good must be purchased or a service received to claim a deduction of input VAT. On 7 March 2011, the Administrative Court of Varna (Administrativen sad Varna) requested a preliminary ruling from the Court of Justice of the European Union... read more read more
Bulgaria - Preliminary ruling requested from ECJ
Preliminary ruling requested from ECJ on when the open market value can be used as taxable amount between related parties . On 14 March 2011, the Administrative Court of Varna (Administrativen sad Varna) requested a preliminary ruling from the Court of Justice of the European Union in OOD... read more read more
Germany - Preliminary ruling requested from ECJ
Preliminary ruling requested from ECJ on limitation of the exemption for portfolio managment to managment of investment funds. On 31 January 2011, the German Federal Finance Court (BundesFinanzhof) requested a preliminary ruling from the Court of Justice of the European Union in Finanzamt... read more read more
United Kingdom - Preliminary ruling requested from ECJ
Preliminary ruling requested from ECJ on decisive factors for deciding whether a supply constitutes a single taxable supply or two separate supplies . On 4 March 2011, the Upper Tribunal (Tax and Chancery Chamber) requested a preliminary ruling from the Court of Justice of the European Union... read more read more
Belgium - Preliminary ruling requested on imposition of VAT on costs
Preliminary ruling requested from ECJ on imposition of VAT on costs or amounts which could have been charged but are not charged. On 16 February 2011, the Court of First Instance Brugge (Rechtbank van eerste aanleg Brugge) requested a preliminary ruling from the Court of Justice of the... read more read more
France - Commission refers France to ECJ over super reduced rate
ECJ: Commission refers France to ECJ over super-reduced rate of VAT for first performances of a work. On 4 March 2011, the European Commission referred France to the Court of Justice of the European Union (ECJ) in European Commission v. France (Case C-119/11) for applying a super-reduced... read more read more
Ireland - Commission refers Ireland to ECJ over reduced rate
ECJ: Commission refers Ireland to ECJ over reduced VAT rate for horses and greyhounds . The number of the Court of Justice of the European Union (ECJ) in the case of European Commission v. Ireland (Case C-108/11) has become available. read more read more
Ireland - Action against Ireland by ECJ
ECJ: Action against Ireland for allowing non-taxable persons to join VAT group . On 24 February 2011, the European Commission referred Ireland to the Court of Justice of the European Union (ECJ) in European Commission v. Ireland (Case C-85/11) for allowing non-taxable persons to join a VAT... read more read more
United Kingdom - Action against United Kingdom by ECJ
ECJ: Action against United Kingdom for allowing non-taxable persons to join VAT group. On 24 February 2011, the European Commission referred the United Kingdom to the Court of Justice of the European Union (ECJ) in European Commission v. United Kingdom (Case C-86/11) for allowing... read more read more
Finland - MBA course: PE in Finland, but no VAT
Central Tax Board: MBA course organized by EEA University - PE in Finland; but not subject to VAT . The Central Tax Board (Keskusverolautakunta, KVL) gave its decision on 2 May 2011 in the case of KVL N:20/2011. Details of the decision are summarized below. (a) Facts. A university... read more read more
Switzerland - Tax-free for tourists
Tax-free for tourists: conditions revised . The Federal Tax Administration has recently published the conditions for VAT exemption of goods purchased by tourists ("tax-free for tourists"). In order for purchases made in Switzerland ("purchased items") by tourists to be VAT exempt, the... read more read more
Netherlands - Supreme Court confirms ECJ decision
Netherlands Supreme Court confirms ECJ decision in joined cases Facet Trading and X. On 22 April 2011, the Netherlands Supreme Court confirmed (joined cases Nos. 42192bis and 43175bis) the Court of Justice of the European Union (ECJ) judgment of 22 April 2010 in Staatssecretaris van... read more read more
