EU Tax Alert - Overview 2013

The EU Tax Alert is an e-mail newsletter to inform you of recent developments in the EU that are of interest for tax professionals. It includes recent case law of the European Court of Justice, (proposed) direct tax and VAT legislation, customs, state aid, developments in the Netherlands, Belgium and Luxembourg and more.

Loyens & Loeff - EU Tax Alert

VAT

• Commission proposes a standard VAT return • Council holds policy debate on ‘quick reaction
• mechanism’ against VAT fraud
• Entry into effect of new VAT rules
• CJ rules that VAT on acquired buildings that are demolished with a view to construction of a residential complex is deductible (SC Gran Via Moineşti)
• CJ rules that right to deduction may be denied if the taxable person knew or should have known that he was involved in VAT fraud (Bonik)
• CJ clarifies meaning of the term ‘construction work’ in derogating measure (BLV)
• CJ rules on retrospective reduction of taxable amount under the Second VAT Directive (Grattan)
• CJ rules on chargeable event in the case of supply of construction services where consideration is provided in kind in the form of building right (Orfey)
• CJ rules that re-invoiced costs of insurance fall under VAT exemption (BGZ Leasing)
• CJ rules that Spain has incorrectly applied the reduced VAT rate on certain pharmaceutical and medical supplies (Commission v Spain)
• CJ clarifies the definition of ‘building land’ for VAT purposes (Woningstichting Maasdriel)
• CJ rules on deduction of VAT (improperly) entered on invoices (Stroy Trans and LVK – 56)
• CJ rules that granting access to aquatic park may constitute services closely linked to sports (Město Žamberk)
• CJ rules that VAT on legal costs for criminal proceedings brought against managing directors in their personal capacity is not deductible by the company (Wolfram Becker)
• CJ rules that Ireland incorrectly applies a reduced VAT rate on certain supplies of horses and greyhounds (Commission v Ireland)
• CJ rules that VAT registration may not be refused without sound legitimate grounds (Ablessio)
• CJ rules on scope of exemption for medical services (PFC Clinic)
• CJ rules that non-VAT entrepreneurs may participate in a VAT group (Commission v Ireland and others)
• CJ clarifies rules on refund of improperly invoiced
• VAT (Rusedespred)
• CJ rules on restriction of VAT grouping to specific sectors (Commission v Sweden)
• CJ rules that deduction of VAT may in principle be refused in case of incomplete invoices (Petroma
• Transport SA)
• CJ rules on basis of assessment for assets held after cessation of taxable activities (Hristomir
• Marinov)
• CJ rules on Polish provision on how to establish the time a company becomes liable to pay VAT (TNT Express Worldwide)
• CJ clarifies rules on repayment of input VAT for which the deduction was prevented in breach of EU VAT law (Alakor)
• CJ rules on the qualification as economic activity of exploiting a private photovoltaic installation which is connected to the network (Fuchs)
• CJ rules on VAT duty for private service from VAT- registered private bailiff (Kostov)
• CJ rules on supply of immovable property sold by a judgment debtor in a compulsory sale procedure (Promociones y Construcciones)
• CJ holds that for VAT purposes, the sale of a 30% participation is not to be regarded as a transfer of a going concern whereby the assets and liabilities are continued (X BV)
• CJ clarifies whether fine for belated rectification is contrary to the principle of neutrality and
• proportionality (Rodopi)
• CJ rules contractual terms are not decisive to determine the supplier and recipient of services
• (Paul Newey)
• CJ rules on place of taxability of storage services (RR Donnelley)
• VAT on services relating to pension fund is deductible if it is linked to VAT taxable activities of employer (PPG Holdings)
• CJ clarifies what evidence is required to prove that supplies have taken place (Evita-K)
• CJ rules on deduction of VAT on costs incurred in relation to hired staff (AES)
• CJ clarifies scope of VAT exemption for lease of immovable property (Medicom)
• CJ rules on concept of civil and commercial matters in respect of judicial cooperation between Member States (Sunico)
• CJ rules that supplies for no consideration must under circumstances be regarded as having been
• carried out for consideration (Serebryannay)
• CJ rules on application of travel operator margin scheme in various Member States
• CJ rules that amount due in case of adjustment of VAT initially deducted by a taxpayer should be levied from that same taxpayer (Pactor Vastgoed)
• CJ clarifies rules on payment of default interest in case of a late VAT refund (Steaua Română)
• CJ rules on method to tax gaming machine turnover (Metropol)
• CJ clarifies when the concluded price must be regarded to be inclusive of VAT (Corina-Hrisi Tulică and Călin Ion Plavoşin)
• CJ rules on VAT consequences of payments made with credit cards used in a fraudulent manner (Dixons Retail Plc)
• Advocate General opines that non-taxable persons may be a member of a VAT group (Commission v Ireland)
• Advocate General opines that a VAT grouping system may not be limited to specific sectors (Commission v Sweden)
• Advocate General opines that householder qualifies as VAT entrepreneur for supply of electricity produced by solar panel system (Urfahr)
• Advocate General finds that it is for the national judge to determine what is the correct understanding to treat commercial advertising screening tax according to the national law (TVI)
• AG Kokott delivers Opinion on scope of VAT exemption for educational services (MMDP)
• Advocate General opines that supply of drugs closely related to outpatient care is not VAT exempt (Klinikum Dortmund)
• Commission proposal regarding taxation of telecommunications, broadcasting and electronic services
• Commission refers France and Luxembourg to CJ over VAT rates on e-books
• Commission refers UK to CJ for its reduced VAT rate on supply and installation of energy-saving materials
• Proposal for derogating measure allowing Latvia to restrict the right to deduct VAT on cars
• Council meeting on combating VAT fraud
• Commission requests Poland to amend its
• legislation on reduced VAT rates
• Council agrees on measures to combat VAT fraud
• Council agrees on rules for place of supply of certain
• services
• Council reaches political agreement on measures to
• combat VAT fraud
• Study on VAT Gap
• Commission publishes guidelines on mini One Stop Shop regime
• Commission refers Luxemburg to the CJ over its reduced VAT rate on digital books
• Commission refers Sweden to the CJ over VAT on postal services