VAT News

Search

VAT News 22/2019
EU Commission proposes VAT exemption in order to strengthen the common security and defence policy
On 24.04.2019, the European Commission presented a proposal for a new VAT exemption. In addition to the VAT exemptions for NATO troops, a VAT exemption for supplies of goods and services to armed forces of other EU states will, in the future, also apply. A prerequisite for the application of the exemption is that the troops serve the common defence effort. For this reason, Articles 22, 143 and 151 of the VAT Directive are to be amended. The draft requires Member States to implement the amendments by 31.06.2022, at the latest.
more
VAT News 21/2019
Import VAT in UK - HMRC brief on incorrect import VAT deduction
HMRC intends to strictly implement the correct treatment of input tax deduction of import VAT in the UK: In its letter of 11.04.2019, HMRC points out the current incorrect practice whereby import VAT is often claimed as input tax by non-owners of imported goods. By referencing the example of toll operators, among other taxpayers, HMRC explains how the procedure should be handled correctly. Taxpayers should review their business processes in connection with imports to the UK and adjust them, if necessary.
more
VAT News 20/2019
Federal Fiscal Court: VAT exempt supply of tuition services for professional purposes – in contradiction of the ECJ?
VAT exemption for the supply of commercial education services was recently limited by the ECJ judgment in A & G Fahrschul-Akademie (C-449/17). In doing so, the ECJ defined a new, narrower term for “tuition” than that previously in use. The Federal Fiscal Court did not raise this issue in its most recent decision in this area. Notwithstanding this, however, it assesses the requirements for VAT exempt commercial education and training more strictly than before. According to its standards, the exemption of tango dancing lessons is only possible where a concrete professional relation exists. Due to this deviation from how the ECJ defines the term tuition, the decision is significant for all suppliers of commercial educational services.
more

Pages