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The Federal Fiscal Court has referred the question of the possible VAT exemption of driving schools to the ECJ (Ref. V R 38/16). Fortunately, the referred questions are comprehensive. If the ECJ affirms a VAT exemption, its scope of application will be expanded. Such a ruling may ultimately result in the supply of educational services, by other commercial schools and self-employed teachers, also being found to be VAT exempt. In order to benefit, to the optimum level from the VAT exemption, affected taxable persons need to react now.
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The upcoming introduction of a split payment system by the Romanian tax authorities will enable them to control future payment transactions between taxpayers. It is expected that, as of 1 January 2018, it will be mandatory for customers to transfer invoiced VAT amounts to a special tax account of the supplier. The regulation will also be applicable for taxpayers not established in Romania but registered for VAT purposes there.
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The German Ministry of Finance implements Federal Fiscal Court case law with respect to the waiver of VAT exemptions, as well as the withdrawal thereof. Accordingly, in the future, the waiver and its withdrawal are still permissible up to the substantive enforceability. However, this does not apply to the supply of immovable property outside of a foreclosure procedure. In the future, a taxable person can only opt for VAT liability when a notarial sales contract is concluded.
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