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VAT News 25/2024
Federal Fiscal Court views chain transactions differently to tax authorities, even in the case of fractional transport
In its recently published decision of 22 November 2023, the Federal Fiscal Court ruled that, contrary to the opinion of the tax authorities, a chain transaction is also deemed to exist in the case of ‘broken’ deliveries. The decision relates to the legal situation up to 2019 but should also be applicable by analogy to the current legal situation. Companies are certainly well advised to continue to comply with the German VAT Act and the German VAT Circular. In the event of a dispute, however, the Federal Fiscal Court's findings may prove very helpful.
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VAT News 24/2024
German Federal Ministry of Finance calls for urgent action on online services
In a letter dated 29 April 2024, the tax authorities issued a comprehensive statement on online events and other online services. According to this, the distinction between pre-produced content and live streaming is not only relevant for the place of supply, but also for the application of the reduced VAT rate, as well as VAT exemptions for educational services and in the cultural and health sectors. Pre-produced educational videos, for example, are no longer exempt from VAT. These far-reaching changes will come into force on 1 July 2024. Hence, there is an urgent need for action. The letter also addresses deemed chains of services and combinations of services. It is therefore also extremely relevant in practice for influencers, streamers and anyone who offers a recording, in addition to live streams.
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VAT News 23/2024
VAT in the Digital Age – Compromise proposal: overview and timetable
The digital age of VAT could soon be upon us. The EU Commission's proposal for a Directive of 8 December 2022 had envisaged comprehensive changes for the platform economy, reporting obligations and electronic invoicing as well as a single EU VAT registration. However, this was criticised and objected to by some of the Member States. A compromise proposal is now on the table, which the ECOFIN Council is going to discuss at its meeting on 14 May 2024. According to reports, a political agreement on the proposal is within reach. If this is not achieved immediately, the meeting on 21 June 2024 would be the next opportunity. As soon as the EU Council has reached an agreement, we will inform you, in detail, concerning the upcoming changes. In this newsletter, we would like to give you a brief overview of the currently suggested new timetable and compromise proposals.
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