“[A]ny State claiming a pioneer role in the development of new technologies bears special responsibility for striking the right balance in this regard” – The European Court of Human Rights in the S. and Marper v. the UK case (4 December 2008) [para. 112] 1        Introduction Fundamental taxpayers’ rights impose on regalian authorities the obligation to be…

It has been 60 years since publication of the OECD 1963 Draft Double Taxation Convention on Income and Capital. That model has provided the core and structure of all subsequent model double tax treaties published by the OECD, the UN and some states. During this period the number of bilateral tax treaties has grown exponentially….

DAC7 The Seventh EU Directive on Administrative Cooperation in the field of taxation (“DAC7”)[1] introduced new reporting obligations for Platform Operators. Although these reporting obligations entered into force as of 1 January 2023 already and the first reporting deadline is 31 January 2024, the concept of Platform is not always clear. Thus, determining whether software…

The eternal return is an ancient philosophical concept acquiring beautiful poetic nuances in the work of Friedrich Nietzsche. Unfortunately, this fascinating circular conception of life’s events becomes vulgar when it comes into contact with such a mundane reality as that of (Tax) Law. Here, the “ewige Wiederkehr des Gleichen” would sound anything like: “Hey buddy,…

Introduction The growing uncertainties about Pillar One’s success, coupled with the recent EU Council’s mandate to the Commission to submit an EU legislative proposal in case Pillar One fails, have reignited the debate on whether Digital Service Taxes (DSTs) are a possible and suitable solution to address the challenges raised by the digitalization of the…

Should services performed by a member of a board of directors towards the company of which s/he is a member be subject to VAT? This is a question that keeps many VAT legislators, authorities, and advisors around the world busy. It is an area that has seen numerous changes in tax policy, sometimes as a…

Customer’s status and capacity under EU VAT place of supply rules Other than for attributing VAT personality to suppliers of goods or services, the concept of taxable persons is relevant for applying the place of supply rules for services laid down in Title V, Chapter 3 of the VAT Directive (Articles 43 – 59a) [1]….

Value-Added Tax (VAT) is considered an efficient and neutral form of taxation. Yet, although its invoice-credit method and the system of fractioned payments make it a self-policing tax, the VAT can be rather complex and costly to administer for businesses, which spend significant time and resources to comply with obligations associated with this tax. VAT…

As it currently stands, the legal and policy framework for non-profit organisations and foundations within the European Union differ – in some cases slightly, in others significantly. This regularly causes an inconsistent treatment of cross-border activities and generates high compliance and legal costs for NPO’s carrying out cross-border activities within the European Union. On February…

The current state of play in the negotiations for an EU Pillar 2 Directive is that all but one Member State are on board. Hence, there is one “dissenting” Member State left. As unanimity is needed within the Council to adopt an EU Directive on Pillar 2, it is currently not possible to implement Pillar…

The very recent CJEU judgement in Berlin Chemie A. Menarini v Administraţia Fiscală pentru Contribuabili Mijlocii Bucureşti (Case C-333/20) ECLI:EU:C:2022:291, admirably examined by Giorgio Beretta last week considered the circumstances in which a subsidiary might be a VAT fixed establishment (FE) of its parent company or another affiliate. A Romanian company supplied advertising, marketing and…

A subsidiary cannot be a fixed establishment (FE) under EU VAT in (almost) any case. This is a (quite) reassuring takeaway for VAT businesses from the much-awaited decision by the Court of Justice of the European Union (CJEU) in Berlin Chemie A. Menarini (Case C-333/20). With its ruling on 7 April 2022, the CJEU (re?)affirmed…

The Court of Justice of the European Union (CJEU), by means of an Order in Case C-255/20 of 9 November 2021 [1], established the incompatibility with EU law, in particular with Directives 2008/118/EC and 92/12/EEC, of the Italian Regional Tax on Petrol for Automotive (IRBA), due to the absence of a specific purpose attributed to…

Introduction: some uneasy questions Taxation is at the core of the UN 2030 Agenda since it is an essential element to build a more equal, as well as more prosperous, society and provides the “fuel” needed to realize all the ambitious plans required to decrease our impact on the environment.[1] Therefore, good tax governance is…