VAT

Value added tax.

Arm's Length, Beneficial ownership, Carbon neutrality, CJEU, Digital platforms, EC Tax Review, EU VAT, VAT

(General Editor EC Tax Review and tax adviser at Ernst & Young Belastingadviseurs LLP)/ /Leave a comment

We are happy to inform you that the latest issue of the journal is now available and includes the following contributions: Han Kogels, A Changing World Making the Road to Carbon Neutrality Even More Bumpy Since the Conference of the Parties (COP) in Glasgow in November 2021 (COP26) the world has changed dramatically. In February…

Digital platforms, EU VAT, Sharing economy, VAT

(Vienna University of Economics and Business)/ /Leave a comment

The focus of this contribution are the newly proposed rules for the sharing platform economy under the VAT in the Digital Age (ViDA) reform package, published on 8 December 2022 by the European Commission. The proposed rules[1] envisage the introduction of a new Article 28a into the VAT Directive stipulating: “Notwithstanding Article 28, a taxable…

Directive, Spain, Use and enjoyment, VAT

(Spanish VAT Services; Madrid VAT Forum Foundation)/ /Leave a comment
VAT

Article 59a of the VAT Directive (Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax) was implemented into the Spanish domestic legislation through Article 70(2) of the Spanish VAT Law (Law No. 37 of 28 December 1992 on value added tax). This article contains a particular place of supply rule,…

Company, Directors' Services, EU, Taxable persons, UAE, VAT

(Head of Tax Strategy for Careem and Author of ‘Fundamentals of GCC VAT Law’) and (Amsterdam Centre for Tax Law (ACTL) of the University of Amsterdam; Lund University)/ /Leave a comment

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…

Booking.com, EU, Sharing economy, Taxable persons, VAT

(Amsterdam Centre for Tax Law (ACTL) of the University of Amsterdam; Lund University)/ /Leave a comment

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]….

Booking.com, EU, Sharing economy, Taxable persons, VAT

(Amsterdam Centre for Tax Law (ACTL) of the University of Amsterdam; Lund University)/ /Leave a comment

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…

Directive, Spain, Use and enjoyment, VAT

(Spanish VAT Services; Madrid VAT Forum Foundation)/ /Leave a comment

Article 59ab of the VAT Directive (Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax) was implemented into the Spanish domestic legislation through Article 70(2) of the Spanish VAT law (Law No. 37 of 28 December 1992 on value added tax). As is well known, this article contains a special…

CJEU, Direct taxation, ECJ, EU, Germany, Indirect taxation, International Tax Law, Non-established taxpayers, OECD, Permanent Establishments, Physical presence, Place of taxation, Tax Treaties, United Nations, VAT

(Temple Tax Chambers; King’s College London)/ /Leave a comment

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…

EU, Exclusive Service Provider, Fixed establishment, Subsidiary, VAT

(Amsterdam Centre for Tax Law (ACTL) of the University of Amsterdam; Lund University)/ /Leave a comment

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…

Crypto-assets, NFT, Ruling, Spain, VAT

(Spanish VAT Services; Madrid VAT Forum Foundation)/ /Leave a comment

On 10 March 2022, the Spanish Tax Administration issued a ruling concerning the VAT treatment of the transfer, through an online internet auction, of NFTs (Non-Fungible Tokens) that grant their purchasers certain rights of use (hereinafter: ‘the Ruling’).[1] The Spanish Tax Administration provides through this ruling a comprehensive analysis of the taxation for VAT of…

Customs and Excise, Italy, VAT

(PhD – University of Brescia/Bergamo; Tax Lawyer in Milan)/ /Leave a comment

Through the judgment in Case C-714/20 issued on 12 May 2022 [1], the Court of Justice of the European Union (CJEU) clarified that the indirect customs representative is liable, jointly and severally with the importer, only for customs duties relating to the goods and not for import VAT. This conclusion consolidates the EU jurisprudence on…

Crypto-assets, Cryptocurrency, VAT, Virtual activities, Virtual world

, (Ernst & Young GmbH, Germany)/ /Leave a comment

About a year ago, a Regional Fiscal Court in Cologne (Germany) ruled virtual renting of virtual land to be a VATable transaction.[1] In the case, a German taxpayer generated revenue by renting out virtual land. The taxpayer – or rather his avatar – received virtual currency in exchange for the virtual land. The taxpayer then…

Brazil, IPI, VAT

(postdoctoral researcher at the Institute for Austrian and International Tax Law (WU))/ /Leave a comment

Phelippe Toledo Pires de Oliveira[1] In late February 2022, the Brazilian federal government published a decree slashing the federal tax on manufactured goods (IPI). For those unfamiliar with the country’s taxes, IPI is one of the many VATs levied in Brazil. IPI is levied by the federal government and is often used as an excise…

CJEU, Double Taxation, DTA, Dual VAT, ECJ, Financial institutions, Financial services, Fixed establishment, Indirect taxation, International Tax Law, Pensions, Permanent Establishments, Physical presence, Place of Supply, Place of taxation, Tax Treaties, United Nations, VAT, VAT grouping

(Temple Tax Chambers; King’s College London)/ /Leave a comment
PVD article 44

Territorial connection (or its more fashionable name “nexus”) for tax purposes is expressed in a variety of ways in domestic and international legal instruments. Permanent establishment in article 5 of the Model treaties and “fixed base” in article 14 of the UN Model are central concepts in direct tax subject matter jurisdiction. Fixed establishment The…