Composite supplies are one of the most commonly debated issues under European VAT (EU VAT). Despite its unquestionable relevance as a topic, neither Directive 2006/112/EC (the VAT Directive) nor Council Implementing Regulation (EU) no. 282/2011 (the VAT Implementing Regulation) contain any settled rule providing a clear indication on how to deal with the issue of…
A subsidiary can (also) be a fixed establishment (FE) of its parent company under European (EU) VAT, after all. This is the most immediate conclusion as it emerges from the much-awaited decision by the Court of Justice of the European Union (CJEU) in Dong Yang Electronics (Case C-547/18). With its ruling on 7 May 2020,…
On 14 November 2019, AG Kokott released her opinion in Dong Yang Electronics (Case C-547/18), referred to the Court of Justice of European Union (CJEU) by the Regional Administrative Court of Wroclaw (Poland) and concerning the existence of a VAT fixed establishment (FE) of a third-country (Korea) company in an EU Member State (Poland). As AG…
The past few years have seen the sensational rise of new models of production, distribution, and consumption of goods and services, which have been synthetically captured under the umbrella definition of “sharing economy”. The ascent of digital platforms – including renowned companies headquartered in the Silicon Valley like Airbnb and Uber, or the French unicorns…
The Italian Stability Law for 2019 finally approved on 30 December 2018 has introduced a new art. 24-ter in the Income Tax Act (ITA). It includes a substitute tax of 7%, in lieu of ordinary taxation, on all non-Italian-sourced income earned by foreign pensioners transferring their tax residence in the southern regions of Italy. The…
VAT is a broad-based tax on final consumption by households. Even if, due to the invoice-credit mechanism through which the tax is normally levied, only final consumption is ultimately targeted, VAT uses each transaction taking place at every stage of the production and distribution process as taxing points. Depending on how a transaction is classified,…
