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Umsatzsteuer Newsletter 27/2016
On 15 September 2016 the ECJ published two fundamental judgments. As a result, the German fiscal authorities, as well as the tax courts, now need to rethink many cases. The previous formalism associated with the issuing of invoices will be considerably reduced in the future. The requirement to pay interest as a result of formal invoice errors will become a thing of the past. Companies, that were denied VAT deduction in the past, due to formal invoice errors, now have the chance to reclaim the interest paid. However, these judgments do not mean a carte blanche approach to invoices. Rather, they will assist in containing the excessive formalism. It may take some time before an official reaction from the fiscal authorities is forthcoming. However, taxpayers should immediately seize the opportunities afforded them by the judgments.
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Umsatzsteuer Newsletter 26/2016
BELGIUM implements entry certificate +++ FRANCE promotes e-invoicing +++ LATVIA expands reverse-charge-system +++ NORWAY intends to implement SAF-T +++ AUSTRIA boasts interesting court decisions +++ POLAND publishes regulation regarding SAF-T +++ SLOVENIA restricts registration requirement and implements simplification for import VAT +++ CZECH REPUBLIC expands reverse-charge-system and abolishes tax exemption +++ Hungary expands EKAER obligations
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From time to time, taxable persons find themselves accused of being involved in VAT carousels. The tax court in Baden-Wuerttemberg recently granted a suspension of enforcement to such a taxable person. If there is VAT fraud in a supply chain, denying the input VAT deduction for every purchase in the chain is more than the principle of neutrality requires. Furthermore, the suspension was granted, as the enforcement of the VAT assessments would have resulted in significant financial hardship for the Applicant.
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