Germany
Reverse charge on supplies with installation – Be careful!
In Germany, the reverse charge mechanism applies to work supplies by a non-established taxable person to another taxable person, even if that operation actually qualifies as a supply of goods from a German VAT perspective. There is however a distinction to be made between such work supplies (“Werklieferungen”) and assembly deliveries (“Montagelieferungen”), although both operations include an installation and are therefore deemed to take place in Germany from a VAT perspective.
On October 1st, 2020, the German Authorities issued clarifications in that respect, implying clearer definitions of these concepts.
France
Reduced VAT rate applicable to the admission fees collected for cultural, recreational, educational or professional activities
You are planning to organize next year a conference, a workshop, a congress in France where participants will pay an entry fee, Article 37 of Law of Finance No. 2019-1479 of 28 December 2019 for 2020 extended the application of the reduced rate of 10% of the value added tax (VAT) on certain cultural, recreational, educational or professional activities.
On September 23rd, 2020, the French Tax Authorities confirmed the precise scope of the new provision. Read more…
Poland
Lack of registration of bank account in the white list and consequences
In principle, all suppliers dealing with Polish customers have to record their bank account(s) in the so-called White List in Poland. Based on the Polish law, the Polish customers must indeed make payments to a bank account available in said White List. If a customer pays to another bank account, there are tax consequences for him: the expense would not be regarded as a deductible cost and the customer would be jointly and severally liable with the supplier for the VAT due.
Changes in that matter have been introduced on 1 July 2020 and it is now easier for the customers to avoid these negatives consequences. Read more…
EU Case-Law
Right to deduct import VAT if the importer of record is not the owner of the goods
In 2008, Weindel, a company active in the field of reconditioning services, imported goods from Switzerland, Hong Kong and China to Slovakia for reconditioning. Weindel released the said goods for free circulation. Once repackaged in Slovakia, the goods were supplied to other Member States or exported to third countries. The repackaging service was invoiced to the customer, a Swiss company which remained the owner of the goods concerned throughout the whole process. The invoices issued by Weindel therefore only related to the repackaging services and not to the imported goods.
Weindel paid the import VAT and wanted to recover it. The Slovakian Authorities were however of the opinion that Weindel was not entitled to deduct that import VAT. Read more…
NOTEWORTHY
France
The draft Finance Bill for 2021 has been published and it notably includes a proposal for a VAT group regime as well as a clarification about composite offers.
Germany
The European Commission submitted a formal notice asking to withdraw the FE22 certificate. That certificate is currently required from all online sellers.
Ireland
The VAT rate applicable to hospitality and tourism sector should be reduced from 13.5% down to 9% from November 01, 2020 till December 2021, due to the COVID-19 crisis.