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VAT News 11/2015
German dentists and denturists are required to pay VAT when purchasing dental prostheses from the EC
Curative treatment supplied by dentists is VAT exempt. This VAT exemption however is not applicable to the supply of dental prostheses in Germany. Such supplies are subject to German VAT. Dentists are not permitted to deduct input VAT from the purchase of dental prostheses that are used by the dentists for their supplies of VAT exempt services. The ECJ has decided that this is also applicable for intra-Community acquisitions of dental prostheses in Germany. Accordingly, dentists are often required to pay VAT without being entitled to deduct input VAT. Likewise, the supply of dental prostheses by denturists is subject to German VAT
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VAT News 10/2015
VAT group: Can only taxable persons be the controlling company? – pending before the Federal Fiscal Court
Sec. 2 para. 2 no. 2 of the German VAT Act regarding the requirements for a consolidated VAT group is formulated more restrictively than the underlying art. 11 of the VAT Directive. Therefore, entrepreneurs often refer to the EU law which is, in many cases, often more favorable for them. Although the tax court Saarland rejected the direct application of art. 11 of the VAT Directive in the particular case, entrepreneurs should continue to refer to this regulation until the Federal Fiscal Court clarifies this issue.
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VAT News 09/2015
Private hospitals treatments are also tax-exempt!
If the requirements, according to the wording of a national VAT exemption regulation, of sec. 4 of the German VAT Act are not met, VAT exemptions will usually be denied by the German tax authorities. The European law is not taken into consideration. The Federal Court of Finance repeatedly directly applied a VAT Directive tax exemption regulation, in this case to supplies carried out by private hospitals. Supplies carried out by private hospitals are not subject to VAT, independent of their certification with respect to social security law.
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