Many banks outsource single tasks to external providers. Banks are only partly entitled to deduct input VAT. Therefore, banks are interested in the fact that the outsourced services are VAT exempt. The ECJ has already decided that, when purchasing cinema tickets, the processing of debit or credit card payments is not VAT exempt. Now, the German Federal Fiscal Court would like to know if this also applies to the operation of ATMs.

Whether legal remedies lodged in VAT related proceedings are successful not only depends on substantive law, procedural law can also be of decisive importance. For example: Appeal against assessment of interest ++ Sufficient determination of the claim ++ Liability of the managing director in the case of insolvency ++ Burden of proof re the place of supply ++ Amended tax assessment issued between the pronouncement of judgment and notification of judgement.

According to the ECJ decision of 08.02.2018, the taxation of travel service, in accordance with sec 25 of the German VAT Act, is contrary to the VAT Directive. Hence, Germa-ny will have to amend sec 25 of the German VAT Act. On the one hand, the scope of the margin taxation will have to be expanded to cover the supply of B2B services. On the other hand, the possibility of taxing the travel services, based on an overall margin will have to be denied. Until then, it should be borne in mind that double taxation or double nontaxation might apply to cross-border supplies. A positive outcome could be reached by referring directly to ECJ case law. For calculations and offers, as well as contracts, which relate to future projects, the planned tax changes should, as a precaution, be taken into consideration. However, there are also other outstanding issues.