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Umsatzsteuer Newsletter 38/2021
VAT fully chargeable at the time a supply is carried out – even in the case of instalment payments
The ECJ (case C-324/20) has ruled that, in the case of an instalment payment extending over five years, the respective VAT is chargeable at the time the supply of service is rendered. This decision differs from that made by the ECJ in the case of a player’s agent who was paid over three years for a supply of agency business services to a football club. However, the ECJ did not specify clear criteria for demarcation in this respect. In practice, it is recommended that full VAT be claimed from taxable persons entitled to input VAT deduction at the very outset of an instalment payment agreement.
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Umsatzsteuer Newsletter 37/2021
ECJ: Input VAT deduction only with invoice but without need for minimum mandatory information?
In its recent decision of 21.10.2021 – C-80/20, Wilo Salmson, the ECJ clarifies that a taxable person must have an invoice in order to claim an input VAT refund. However, the court also makes it clear that the concept of an invoice is to be understood very broadly. The ECJ distances itself, consciously or not, from the minimum mandatory information for the acceptance of an invoice entitling the recipient of a supply to deduct input VAT as laid down by the German Federal Fiscal Court (most recently in the ruling of 12.03.2020 - V R 48/1) and the German Ministry of Finance (letter of 18.09.2020).
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Umsatzsteuer Newsletter 36/2021
Fuel Cards – Draft of a Circular from German Ministry of Finance
The German Ministry of Finance (BMF) recently provided a draft of a BMF Circular entitled “VAT assessment of transactions in the fuel card business” to industry associations with a request for comments to be provided by 4 November 2021. The BMF Circular is intended to take effect as early as 01.01.2022. If it comes into force in the currently planned version, the BMF will overturn the customary structure of fuel card transactions and follow the ECJ in the Vega International case: fuel card transactions will generally be considered credit services. This results in an urgent need for action for all parties involved.
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