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VAT News 37/2019
VAT group: new legal regulation in Germany
The Federal Ministry of Finance has suggested changing the German VAT regulations as regards VAT groups (Federal Ministry of Finance, key issue paper of 14 March 2019). One significant proposed innovation is that the legal consequences of group taxation will only occur after the group members have submitted a joint application. By means of these and other innovations, there is finally the prospect of more legal certainty for the taxpayers concerned. It is therefore to be hoped that the German legislator will soon implement the Federal Ministry of Finance’s proposal.
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VAT News 36/2019
Payment by instalments: German Federal Fiscal Court implements ECJ legal opinion
The ECJ’s decision in baumgarten sports & more GmbH (see KMLZ VAT Newsletter 52/2018) served to provide the German Federal Fiscal Court with guidelines on the incurrence of VAT in payment by instalment transactions. The case concerned a professional football player agency. Nevertheless, the decision impacts on almost all businesses where payments by instalment agreements play a role. With the now published decision, the German Federal Fiscal Court follows the requirements set up by the ECJ. For taxable persons, recommendations for action concerning national practice can be drawn from this decision.
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VAT News 35/2019
Educational services still VAT exempt? Federal Fiscal Court for the first time confirms the ECJ’s narrower definition of tuition
In a decision subsequent to the ECJ decision A & G Fahrschul-Akademie (C-449/17), the Federal Fiscal Court ruled that driving lessons are not exempt from VAT (Az: V R 7/19). In so doing, the Court confirmed, for the very first time, its acceptance of the narrower definition of “tuition”. Although the decision itself is not surprising, the restricted interpretation will have far-reaching consequences for those educational services which have, “traditionally”, been exempt from VAT. The judgement corresponds to the legal reorganization of educational services planned for 01.01.2021 and is thus important for all suppliers.
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