BULGARIA demands security deposit for fuel supplies +++ FRANCE eliminates prefinancing of import VAT +++ ITALY plans voluntary self-disclosure and offers invoices to be issued by the authorities +++ THE NETHERLANDS plans simplification on VAT refunds due to bad debt +++ POLAND requires security deposit for VAT registrations +++ ROMANIA reduces standard tax rate +++ SLOVAKIA pays interest input VAT refunds +++ CZECH REPUBLIC regulates input VAT correction in the case of insolvency +++ HUNGARY grants EKAER simplification for AEO

The German Federal Fiscal Court has recently decided that a US American operator of online communities is subject to VAT in Germany. The plaintiff’s services were partially rendered by staff members. Nevertheless, the Federal Fiscal Court regarded plaintiff’s services as being rendered electronically. This decision should catch every entrepreneur’s attention. They should examine whether they render electronically supplied services. If yes, the services could be subject to VAT abroad.

On 15 September 2016 the ECJ published two fundamental judgments. As a result, the German fiscal authorities, as well as the tax courts, now need to rethink many cases. The previous formalism associated with the issuing of invoices will be considerably reduced in the future. The requirement to pay interest as a result of formal invoice errors will become a thing of the past. Companies, that were denied VAT deduction in the past, due to formal invoice errors, now have the chance to reclaim the interest paid. However, these judgments do not mean a carte blanche approach to invoices. Rather, they will assist in containing the excessive formalism. It may take some time before an official reaction from the fiscal authorities is forthcoming. However, taxpayers should immediately seize the opportunities afforded them by the judgments.