Umsatzsteuer Newsletter

Search

Umsatzsteuer Newsletter 05/2022
ECJ: Input VAT deduction at the time of payment if supplier is subject to cash accounting scheme
According to Union law, the right to deduct input VAT arises when the deductible VAT becomes chargeable. In its recent ruling, the ECJ confirms this rule also for the case that the VAT becomes chargeable only upon receipt of payment due to the supplier calculating its VAT on the basis of the remuneration received (cash accounting scheme). The recipient can then deduct the input VAT only at the time of payment. This applies to all recipients, irrespective of how they calculate their VAT. In this respect, the German law and the current view of the tax authorities are contrary to Union law.
mehr
Umsatzsteuer Newsletter 04/2022
ECJ: Penalties for conduct in breach of contract subject to VAT?
The demarcation between compensation for damages and consideration for supplies rendered, has been an ongoing issue in daily practice. According to sec. 1.3 para. 3 of the German VAT Circular, contractual penalties, inter alia, are deemed to be compensation for damages rather than consideration for supplies. The ECJ is now narrowing this view. In its judgment of 20 January 2022, (C-90/20 – Apcoa Parking Danmark A/S), it ruled on a case concerning the use of a private sector parking space. If a motorist violates the general conditions of use when using a parking space and, as a result, is required to pay an (additional) amount of money, the ECJ considers this to constitute consideration for a supply of service, subject to VAT, for the specific use of the parking space.
mehr
Umsatzsteuer Newsletter 03/2022
The German VAT group is tottering … – but will it fall?
Two cases have been referred to the ECJ and are currently pending in which the ECJ has to decide on questions concerning the German VAT group. The core issue in both proceedings is whether the controlling company - as provided for by German law - can be the taxable person and thus the person liable for payment of VAT. In her current Opinion on the proceedings, the ECJ’s Advocate General Medina assumes that German law is contrary to Union law as regards this issue. However, she goes one step further: she seems to consider that (contrary to the previous unanimous opinion) internal transactions within the VAT group are taxable.
mehr

Pages