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VAT News 04/2016
Property development cases: Federal Fiscal Court decides on sec 27 para 19 VAT Act
The settlement of past property developer cases is in full swing. For the first time, the Federal Fiscal Court comments on the unconstitutionality of sec 27 para 19 of the German VAT Act. The Court considers it to be possible and grants the supplier of property development services suspension of enforcement. The tax court in Lower Saxony has just denied the unconstitutionality in a recently published principle proceeding. There is also a first civil-law decision available. It confirms the supplier’s civil claim vis a vis the property developer.
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VAT News 03/2016
Fireworks at the Federal Fiscal Court regarding VAT groups
According to the Federal Fiscal Court, it should be possible, under certain conditions, to qualify partnerships as controlled companies in a VAT group. This has not previously been possible under national law. However, much will remain the same. The Federal Fiscal Court’s ruling has fallen below expectations. It is unfortunate, that the scope of VAT groups has not been further expanded. It is positive, however, that the criterion of organizational integration has not been intensified. The undefined requirement of “institutionally ensured possibility of intervention“ is retained.
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VAT News 02/2016
Reform of VAT taxation of public bodies
The tax reform law 2015 introduced sec. 2b German VAT Act. This change has allowed the legislator to harmonize the legal situation for the taxation of legal entities under public law with the legal case law of the Federal Fiscal Court. There is now a special regulation for assistance services. Legal entities under public law will now act as entrepreneurs in the case of supplies worth less than EUR 30.678 and within the framework of asset management. It is to be expected that the Federal Ministry of Finance will issue an administrative circular regarding sec. 2b German VAT Act during the course of this year.
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