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Umsatzsteuer Newsletter 54/2020
Federal Ministry of Finance letter on VAT treatment of vouchers
Taxable persons have always issued vouchers under a diverse range of purposes. They are used, for example, for the purpose of customer acquisition. They also have a pre-financing effect and are often not redeemed by the customer, despite payment. Since 01.01.2019, vouchers have been regulated by sec. 3 para. 13 to 15 German VAT Act. The Federal Ministry of Finance’s recent letter dated 02.11.2020 now sets out how, in the opinion of the tax authorities, the provisions should be interpreted. At least as of 01.01.2021, taxable persons should, if possible, structure their vouchers as multi-purpose vouchers.
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Umsatzsteuer Newsletter 53/2020
VAT exemption for intra-Community supplies: German Federal Ministry of Finance comments on questions of doubt
The German Federal Ministry of Finance has published its long-awaited letter on the conditions for VAT exemption of intra-community supplies, which were tightened as of 01.01.2020. The Ministry has a very strict view regarding recapitulative statements. These must not only be submitted correctly and completely, but also on time. Corrections of any errors must also be made in due time and also in the appropriate period. Regarding the use of VAT ID numbers, the Ministry is much more liberal. There are no heavy demands placed on the proof of use and retroactive use is also possible. However, one thing seems to be inevitable: It must always be checked whether the customer's VAT ID number is valid at the time of delivery. Digital tools such as the KMLZ VAT-ID Verifier can offer support in this regard.
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Umsatzsteuer Newsletter 52/2020
ECJ on development measures: full input VAT deduction and no taxation of a supply carried out free of charge
The ECJ has strengthened the right to deduct input VAT and thus the neutrality of VAT. Taxable persons who construct development facilities and later hand them over to the municipality, free of charge, are entitled to deduct input VAT. With its judgment of 16 September 2020 in the case Mitteldeutsche Hartstein-Industrie AG (C-528/19), the ECJ goes even further and states that taxation of a supply carried out free of charge can also be omitted.
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