A limited company is not permitted to deduct VAT regarding the expenses incurred with respect to the criminal defence of its CEO even if the criminal charges are connected to his operating activities (Federal Fiscal Court, judgment of 11 April 2013, V R 29/10). The same applies for individual entrepreneurs. It only does not affect VAT deduction if proceedings are also taken against the company.
On 21 June 2013, the EU-Council decided to amend Implementing Regulation (EU) No. 282/2011. Most of the changes are related to the rules regarding the place of supply for telecommunication, broadcasting and electronic services that will be amended with effect as of 1 January 2015. In addition, changes regarding services connected with immovable property have been implemented. Companies should acquaint themselves, at an early stage, with these interpretation rules. The Implementing Regulation (EU) is directly applicable without any further implementation act.
Finally, the so called Amtshilferichtlinien-Umsetzungsgesetz (AmtshilfeRLUmsG) was published on 29 June 2013 in the Federal Law Gazette. Most of the changes, among them changes to VAT law, will be effective the day after the Act has been published. Once more, taxable persons must react quickly and amend their invoice templates. Customers should carefully review incoming invoices, in order to ascertain that they are in line with the new invoicing rules in order to ensure input VAT deductions.