With effect from 01.07.2016, the EU has reduced and partly eliminated import duties for a large number of information and entertainment electronics and electro technology goods (Regulation (EU) 2016/1047 of 28.06.2016). The cost of importation of these goods has therefore reduced significantly. Our newsletter aims to provide you with information on which products are affected by the reduction, within what timeframe further reductions of import duties are to be expected and how you can benefit of these reductions.

After many years of discussion, on 1 July 2016 the Directive (EU) 2016/1065 regarding the VAT treatment of vouchers was finally published. The Directive introduces new definitions such as ‘single-purpose voucher’ and ‘multi-purpose voucher’. Furthermore, the Directive stipulates the criteria for cases where the issue and transfer of vouchers are subject to VAT. The Member States must adopt this Directive in their national laws by 31 December 2018.

In the case Larentia + Minerva, the German Federal Fiscal Court intended to restrict VAT deduction for holding companies by assuming that holding companies always have a non-economic sector. On this occasion, the Federal Fiscal Court was thwarted by the ECJ, which did not agree with it. Now, the German Federal Fiscal Court is attempting to, once again, imply a non-economic activity in a holding company. It seems the court came to the right conclusion, considering the specific facts of the judgment. However, the court was only able to imply a non-economic activity due to the existing weak facts and the unfortunate argumentation of the plaintiff. Therefore, the findings of the court are to be taken with caution and cannot be generalized. Affected companies should prepare and provide sufficient documentation.