Only a few weeks ago, the ECJ published its judgment in the legal case Senatex. Therein, it acknowledged that an invoice may be corrected with retroactive effect for the purpose of input VAT deduction. In its decision of 21 December 2016, the Federal Fiscal Court referred to the Senatex case. It amended its case law and acknowledged that invoice correction, with retroactive effect, is possible at any time prior to the end of a hearing before the tax court.

AUSTRIA simplifies burden of proof for intra-Community triangular supplies +++ BELGIUM is to abolish advance payments if quarterly VAT returns are filed +++ FRANCE may raise its standard VAT rate +++ HUNGARY is chang-ing its mandatory invoice requirements +++ ITALY is implementing quarterly VAT returns and is postponing an increase to its VAT rate +++ NORWAY is implementing the reverse charge mechanism for import VAT +++ POLAND is implementing automatic deregistration and further penalties +++ ROMANIA to lower standard VAT rate +++ SPAIN is expanding electronic reporting obligations +++

The fiscal authorities have worked on the application bulletin regarding the revision of sec. 2b German VAT Act for nearly one year. Although the German Ministry of Finance follows the previous case law of the German Federal Fiscal Court, the fiscal authorities are visibly attempting to lessen the significant effects of the resulting changes. This has culminated in the taxable person having to know what he does according to the “principles of administrative legality”. Even if the public sector still has five more years to adjust, it remains a lot of work. Corporations of public law are now in the main focus of taxation.