As from 1 January 2013 an additional wording needs to be stated on invoices, based on Article L 441-3 of the French Commercial Code. Articles L. 441-3 and L. 441-6 of French Commercial Code state that each invoice and terms of sale related toRead More »
Category: Tax Knowledge
France – fiscal representative for non EU companies
The changes introduced by the French Finance Bill 2012 include some welcomed simplification measures concerning the tax representation of non-EU companies in France. Until the end of 2012 appointing tax representatives was mandatory for non-EU companies for VAT registration, VAT compliance and for obtaining VAT refunds in France. As of 1 January 2013 using tax representatives for companies established outside the European Union, with which France has a legal mutual assistance agreement is no longer required. Read More »
ECJ referral – Advocate General’s opinion is issued on the VAT treatment of the storage of goods
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:62012CC0155:EN:HTML
An ever recurring question of EU VAT is referred to the ECJ namely, whether the storage of goods is a service connected with immovable property, which should be subject to VAT where the warehouse is located (Art 47) or rather it is a regular service which should be taxed in accordance with the general rules (Art 44 of the VAT Directive). Read More »
Italy – VAT grouping will not be possible as expected
The resigning Italian Government did not approve the tax reform package. Due to the fact that the election will take place on February 24 and 25 in Italy, it is likely that the resigning Government will let the draft Decree expire. For the time being, VAT grouping according to article 11 of the VAT Directive will be not introduced in Italy.
European Court of Justice: Different treatment of issuers and recipients of VAT invoices is possible
In its recent judgment (LVK-56 EOOD v. Bulgaria, C-643/11 –
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:62011CJ0643:EN:HTML)
the ECJ held that in line with Article 203 of the VAT Directive suppliers must pay any VAT included in an invoice irrespective of whether there is an underlying taxable transaction.Read More »
Turkey – mandatory e-invoicing and e-bookkeeping as from 1 of September 2013
The scope of the optional e-invoicing arrangement that was first introduced in Turkey in 2010 has recently been extended and made mandatory to a group of taxpayers. These include companies that hold a mineral oil license, produce or import goods subject to Special Consumption Tax (similar to Excise Duty) and companies that already using e-invoicing when supplying goods or services to other businesses that benefit form the application.Read More »
Czech Republic: Change of VAT rules
The Czech VAT changes that have been effective since 1 January 2013 also include new rules that result in more administration for businesses. As an anti-avoidance measure the new rules require businesses to check their suppliers’ bank account numbers.
If the VAT payment is not received from the account that was communicated to the tax authorities and customers made payments to a supplier account that is not known by the tax administration, the authorities can demand VAT payment from the customer. To avoid any negative consequences it is therefore key that you match the recipients’ bank account number with database of the authorities.
The database where the account numbers should be checked will be available on the website of the Czech authorities from 1 April 2013. (For those taxpayers that do not confirm their account numbers to the authorities by 28 February 2013, the bank account that was used for the initial VAT registration will be entered in the database.)
“Black List”
The tax administration will also publish a “Black List” of the unreliable VAT payers by the end of February. In the event that your supplier is on the list, it is possible to make the VAT payment directly to the tax authorities (instead of the supplier), but it is highly recommended to agree this with your supplier. In the event that VAT is paid by the customer and later also by the supplier, the excess payment will be credited to the supplier’s VAT account. The customer will not be able to reclaim this amount from the authorities, only from the supplier as a price adjustment.
Germany: new limitation in the application of deemed intra-community supplies transition period until 1 of March 2013
Based on the opinion of the German Federal Ministry of Finance (Bundesfinanzministerium – BMF) the simplification rule is only applicable if the supplier transports the goods himself. In case the recipient organises the transport or the goods are transported by a third party freight forwarder, the simplification cannot be used. Germany has a simplification scheme in place which allows suppliers to treat the cross-border transaction as an intra-community transfer of own goods. In such a case, the supplier reports an intra-community supply in the EU member state of dispatch and an intra-community acquisition in Germany. The delivery to the recipient of the goods in Germany is treated as a domestic supply of goods and charged with local German VAT.
This simplification rule is very useful as the supplier has only a limited administrative effort. Furthermore, the VAT numbers of the recipients neither need to be requested nor verified on regular basis (which might be a huge administrative burden).
The new limitation of the use of the simplification will not generate more revenue for the tax authority but it will create lots of administrative work which could be easily avoided.
Poland – Abolition of the reverse charge system as from 1 April 2013
Two years ago Poland introduced the reverse charge system for local supplies of goods by non-established entities. As a consequence foreign companies without permanent establishment in Poland are not allowed to charge VAT on their local supplies. This caused some cash flow difficulties as many of these companies are always in recovery position.
As from 1 April 2013 this system will be abolished and non-established companies will again have to charge local VAT on domestic supplies (some minor exceptions where the reverse charge will be applicable will remain).
Ebiz – determination of supplier in case of redirected websites
The German Supreme Tax Court (BFH XIR1610 20120515) has decided that the so-called “shop jurisdiction” is also applicable to internet sales. This means that the operator of a website is considered to be the supplier of the goods or services which were offered on the website, unless it is really obvious that the goods and services are offered in the name and on behalf of another person.
Consequently the design of the website should be always checked from the VAT perspective.
Michaela Merz 