VAT News

Search

VAT News 16/2025
Italy: update on the involvement of a fixed establishment in intra-Community supplies of goods
The Italian fixed establishment of a German headquarters was to be regarded as being significantly involved in a supply of goods by the German headquarters to an Italian customer. This was decided by the Italian tax authorities in a binding ruling in 2023. Very recently, the Italian tax authorities have had to rule again, in a similar case, and this time made a decisive distinction: The involvement of a fixed establishment in a supply of goods is to be ruled out if the fixed establishment merely renders supporting, administrative activities.
more
VAT News 15/2025
Administrative services for dependent foundations: VAT liability looms
The German Federal Fiscal Court has issued its first ruling on the VAT liability of administrative services for dependent foundations. Contrary to what many observers had assumed, these administrative services are not (non-taxable) internal transactions. The specific facts of each case are crucial. Trustees of dependent foundations and other asset pools must now examine their contracts to determine whether they provide their services for consideration.
more
VAT News 14/2025
Risk margin scheme: Most recent decisions and criminal investigations
The application of the margin scheme, in accordance with sec. 25a of the German VAT Act, is subject to strict requirements. Its application therefore involves considerable risks. Recent court decisions in fields such as used car sales, furniture upcycling, and online goods sales demonstrate this to be the case. Resellers wishing to apply the margin scheme should not blindly rely on information from upstream suppliers. The European Public Prosecutor’s Office is currently conducting criminal investigations into this issue in the motor vehicle trade sector.
more

Pages