The provision of access to epapers or ebooks in addition to the subscription of a printed version of the same product are regarded as separate services. Therefore, the consideration paid has to be separately apportioned between the printed product and the epaper or ebook. Printed newspapers and books are taxed with the reduced VAT rate, whereas access to epapers or ebooks has to be taxed with the standard VAT rate.
On 11 July 2014, the Federal Council adopted the “Act for the adaption of the national tax law to reflect the accession of Croatia to the EU and to amend further tax law provisions” which also amends the German VAT Act. Compared to the first draft (KMLZ-Newsletter 10/2014) some amendments were subsequently added to the bill (see topics 5 – 11). Companies should verify, whether action is needed.
Once again, the German Federal Fiscal Court has confirmed that the German provision regarding the tour operator margin scheme is contradictory with respect to the provisions of the EC-VAT-Directive. As long as the legislator does not adjust section 25 of the German VAT Act, there are possible scenarios of non- or double-taxation in the case of cross-border supplies of travel services. Therefore, it is not only tour operators who should determine how to avoid double-taxation or whether the applicable laws allow for non-taxation. Event agencies and other industrial sector businesses recharging travel services may also be affected. Even intra-group cost transfers across the border should be monitored.