GREECE extends local Reverse Charge mechanism +++ INDIA implemented new VAT system +++ ITALY shortens period for claiming input VAT and extends split-payment-system +++ POLAND intends to implement split-payment-system and extends SAF-T reporting obligations +++ ROMANIA introduces data-base for high risk businesses +++ RUSSIA intends to increase standard VAT rate by 4 percentage points +++ SWITZERLAND considers global turnover to be decisive for the liability to pay VAT +++ HUNGARY implement obligation to electronically transfer invoice details after a preliminary test phase and publishes “Blacklist”.

Once again, the ECJ has had to decide on how to ascribe the transport of goods in a chain transaction. The ECJ maintains the principles of its case law in its judgment of 26 July 2017 (case Toridas, C-386/16). However, it also sees a decisive criterion in the notification of the resale of the goods, before they leave the country, in order for the transport not to be allocated to the first supply. This will need to be considered in the future.

Based on two decisions of the German Federal Fiscal Court (XI R 25/12 and V R 6/13) regarding cross-border price discounts, the German Ministry of Finance has now completely revised sec. 17.2 of the German VAT Circular. What is pleasing is that the revision provides clarification that a recipient is not obliged to reduce its input VAT if the price reduction is granted by a supplier carrying out a supply of goods from other EU Member States or non-EU countries. However, what is not so pleasing is the extensive obligation to provide proof.