Umsatzsteuer Newsletter

Search

Umsatzsteuer Newsletter 36/2022
No VAT group between sister companies
Despite the continued existence of doubt from the perspective of Union law, the German Federal Fiscal Court has, once again, ruled that sister companies cannot form a VAT group. In its judgment, the Court also commented on economic links through the letting of office space. Since both of these abovementioned aspects frequently exist in practice in groups and in smaller company structures, the relevance of this judgment extends beyond the individual case.
mehr
Umsatzsteuer Newsletter 35/2022
ECJ: Input VAT deduction by means of an upstream holding not possible
A holding company claimed input VAT deduction from procured services, which services it passed on as a contribution in kind to its subsidiary. Due to the fact that the subsidiary only rendered VAT exempt supplies, a successful claim would have resulted in an expansion of the possibilities for input VAT deduction. In its judgment of 8 September 2022 (Case C-98/21), the ECJ upheld the doubts of the Federal Fiscal Court. The holding company was found not to be entitled to input VAT deduction.
mehr
Umsatzsteuer Newsletter 34/2022
Construction works in terms of VAT and construction withholding tax according to the Ministry of Finance
In its ruling of 07.11.2019, the German Federal Fiscal Court decided that the concept of immovable property for income tax purposes does not have to be congruent with that for VAT purposes. Rather, movable objects can also constitute buildings for income tax purposes. The German Ministry of Finance has taken this as an opportunity to update its letter on the topic of construction withholding tax. This subject is of special interest due to recent geopolitical developments and the associated rethinking of energy production - as the ruling dealt with photovoltaic systems. However, the scope of application is of course much broader and extends to cover all types of structures and parts thereof.
mehr

Pages