2016 will be a challenging year for all companies in the import and export business. The legal situation, as regards customs clearance, will change fundamentally. As of 01.05.2016, the Union Customs Code, the Delegated Regulation and the Implementing Regulation will form the basis for import and export processing in the EU. These implementing acts will replace the Customs Code and the Customs Code Implementing Regulation. In addition to this, 2016 will bring further changes to customs law. These changes have partially applied since the beginning of the year. The KMLZ Customs Law Newsletter provides you with an overview of the main changes in customs law in 2016.

By letter dated 07/12/2015, the German Federal Ministry of Finance (Bundesfinanzministerium, BMF) gave its view on the so-called 'fractional transports' or 'fractional shipments'. The letter has three regulatory requirements. First, the applicability of the tax exemption for export deliveries or intra-Community deliveries in case of fractional transport. Second, the (incorrect) clarification that there are no chain transactions in case of fractional transports or shipments.

The EU Commission has published Explanatory Notes on the EU VAT place of supply rules on services connected with immovable property. The publication follows extensive consultations with the EU Member States and business representatives. While the Explanatory Notes partly correspond to current German legal practice, there is also some significant deviation away from the German Federal Fiscal Court’s case law and the opinion of the German tax authorities. Insofar, the Explanatory Notes can provide valuable guidance in court proceedings.