Latest VAT News
Here, we regularly inform you about new court decisions and other newsworthy developments in VAT matters.
Everything as usual with company car taxation? - BFH ruling V R 25/21 of 30 June 2022
Upon referral by the Saarland Fiscal Court, the ECJ (ruling of 20 January 2021, C-288/19) had (apparently?) rejected the VAT taxation scheme in case the employee does not have to pay for the private use. The tax court then ruled accordingly. In the appeal proceedings, however, the BFH (Federal Court of Finance) came to the conclusion in its ruling published on 29 September 2022: The legal conclusions drawn by the tax court cannot be inferred from the ECJ ruling because this was not even asked for.
Government Draft JStG (Annual Tax Act ) 2022: Zero VATrate on solar modules for photovoltaic systems
On 14 September 2022, Germany’s Federal Government submitted a draft Annual Tax Act (JStG 2022), which contains a significant addition to the speaker's draft law dated 28 July 2022: a zero VAT rate will be applied to solar modules for photovoltaic systems starting
1 January 2023.
1 January 2023.
Update: Direct claim ("Reemtsma claim") in case of wrongly paid VAT: Financial Court Münster refers case to ECJ (C-453/22-1)
If the recipient of the supply cannot recover the excess VAT from the supplier, a direct claim (or "Reemtsma claim") against the tax office may be considered under certain conditions.
Update: Direct claim ("Reemtsma claim") in case of wrongly paid VAT: Financial Court Münster refers case to ECJ (C-453/22-1)
If the recipient of the supply cannot recover the excess VAT from the supplier, a direct claim (or "Reemtsma claim") against the tax office may be considered under certain conditions.
BFH decision XI S 4/21 involves the requirements for a single-purpose voucher in the case of chain transactions
With retroactive effect to 1 January 2019, the German legislature has transposed the EU Voucher Directive into national law. In section 3.17 of the VAT application decree, the German tax authorities provide a detailed statement. However, questions still remain. The BFH (Federal Financial Court) has now granted a suspension of execution with regard to a chain transaction with (alleged?) single-purpose vouchers.
No triangular transaction without reference to transfer of tax liability on invoice? Opinion: "Luxury Trust" (C-247/21)
In her opinion in the Austrian case "Luxury Trust Automobil GmbH" (C-247/21) of 14 July 2022, Advocate General Juliane Kokott argues that an intra-Community triangular transaction only exists if the middle trader indicates on the invoice that the tax liability is being transferred to the customer.
Penalty acquisition taxation in accordance with § 3d S. 2 of the German VAT Code - ECJ ruling "B." (C-696/20)
In a Polish case, the ECJ has taken a position on the additional intra-Community acquisition taxable if the acquirer uses a VAT ID different from that of the state where the movement of goods ends. Under certain conditions, this penalty acquisition taxation violates the neutrality principle and the proportionality principle.
Germany’s Federal Ministry of Finance presents a draft circular letter on the supply with transport of goods in chain supplies
Since 1 January 2020, in response to an amendment to the EU VAT Directive, the German VAT Code applies new rules in determining the supply of goods with transport/dispatch in chain supplies. Although the new EU law largely corresponds to the previously applicable German regulations, differences between the VAT Directive and the German VAT Code - especially in the wording - have led to lively discussions among experts. The BMF is adapting the VAT application decree and clarifying some open questions.
Watch out for irregularities to avoid losing the input VAT deduction or VAT exemption - BMF circular letter dated 15 June 2022
In a circular letter dated 15 June 2022, the German Federal Ministry of Finance (BMF) clarified section 25f of the German VAT Code (UStG), which provides for the denial of input VAT deduction and certain VAT exemptions if the entrepreneur knew or should have known that his or her turnover was involved in tax evasion or a similar offence. The BMF has very specific ideas about when an entrepreneur should be suspicious of something and take further steps.
Even if a reverse charge real estate purchase has not been declared, input VAT must be adjusted - BFH ruling V R 33/18
In its ruling of 1 February 2022 (published on 27 May 2022, V R 33/18), Germany’s Federal Fiscal Court (BFH) ruled that anyone who does not properly declare the taxable acquisition of real estate as a reverse charge transaction and neither enters the output VAT nor the input VAT in the preliminary VAT return must nevertheless make input VAT adjustments in accordance with § 15a of the German VAT Code (UStG).