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In May 2019, the ECJ ruling in Vega on fuel card transactions was issued, following on from the earlier ECJ decision in Auto Lease Holland. The fuel card sector previously considered the two judgments to be of little relevance, given that they concerned individual cases. However, Austria is now proving that these decisions have the potential for significant impact. The current draft of the Austrian VAT Guidelines update strikes at the core business of fuel card companies: chain transactions will no longer be possible. Fuel will be regarded as being supplied directly from the petrol station operator to the cardholder. Fuel card issuers will be considered to provide a supply of services, possibly even VAT-exempt credit services. This will also apply to toll transactions. All companies involved in the fuel card business will be affected, possibly from as early as November 2019.
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On 10.10.2019 the European Commission decided to initiate formal infringement proceedings against Germany in relation to its new legislation on the liability of online marketplaces. This is based on the new regulations in secs 22f and 25e of the German VAT Act on the liability for online marketplaces which came into force on 1 January 2019. The Commission has requested that Germany act within the next two months, i.e. withdraw the new regulations in secs 22f and 25e of the German VAT Act affecting EU online merchants.
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Banks outsource some of their tasks to external service providers. Due to the (at least partial) VAT exemption of their output supplies, it is particularly important for banks that their service providers provide their supplies to the bank VAT-exempt. In the legal case Cardpoint (C-42/18), the ECJ ruled on such an outsourcing case. However, the ECJ assumed that the outsourced supply of service (operation of ATMs) was subject to VAT. Due to the ECJ's strongly case-by-case argumentation, it is not possible to draw too many conclusions for other supplies of services to banks.
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