India – Supreme Court decision taxation of software payments

Recently, the  Supreme Court1 has held that the amounts paid to the non-resident software suppliers, which do not create any right or interest with the distributor/ end-user for use of or right to use any copyright are not royalty under the Double Tax Avoidance Agreement(s) (DTAA). Therefore, the Indian payers were not liable to deduct tax at source (TAS) under section 195 of the Income-tax Act, 1961 (the Act).

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Netherlands – Dutch court confirms broad application of CJEU Boehringer

Yesterday, a Dutch court case was published regarding indirect rebates. In essence, the court of first instance granted a refund to a pharmaceutical company based on the CJEU Boehringer case (C-462/16) although the pharmaceutical company was not obliged to grant the rebates under national law. 

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Italy – Tax authorities may assess under-declared VAT by extrapolation

The Advocate General (AG) has opined that the principles of EU law do not preclude national legislation from assessing a taxpayer, who is presumed to have under-declared VAT, for unpaid VAT by means of estimating that taxpayer’s likely revenues based on studies of comparable taxpayers within the same economic sector. However, the national courts must ensure that principles of law, such as the right to challenge the basis of assessment, are respected (Fontana (C-649/16)).Read More »

India – SC holds that no service tax is payable on reimbursable expenditure or cost incurred by the service provider before 14 May, 2015

Section 67 of the Finance Act, 1994 (the FA, 1994) deals with the valuation of taxable services for the purpose of levy of service tax. Further, the Service Tax (Determination of Value) Rules, 2006 (the Rules) were also issued, to specify inclusion or exclusion of various amounts in the value of taxable services. Read More »

AG opinion in the Boehringer ECJ case

Please find below an update on the currently published Advocate General (AG) opinion in the Boehringer ECJ case (C-462/16) and its potential implications:

First of all, it should be noted that even though the AG’s opinion provide a good insight in the potential direction where the final judgement might go, it should be not taken for granted that the judgement will fully apply the same principles and will came to the same conclusion. Read More »

News from the German tax authorities – Correction of incomplete or wrong information

BerlinThe German tax authorities have now issued the long-expected decree about inter alia, the differentiation between the scopes of the correction of simple mistakes on the one hand and of penal legal matters on the other (including but not limited to the voluntary self-disclosure for exemption from punishment). Read More »

Larentia + Minerva: CJEU issues its decision on the VAT deduction right of active holding companies and VAT grouping rules

Photo_RGB_PC_48164.jpgThe Court of Justice of the European Union (CJEU) released yesterday its decision on the joint cases, Beteiligungsgesellschaft Larentia+Minerva GmbH & Co. KG (C-108/14) (Larentia+Minerva) and Marenave Schiffahrts AG (C-109/14) (Marenave).

The questions referred to the CJEU concern two significant issues:

  • The input VAT recovery of holding companies involved in the management of their subsidiaries
  • The VAT grouping rules and the restrictions imposed by national law.

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Supply Chain in Germany: new important Federal Fiscal Court decisions

652422_web_R_K_by_lichtkunst.73_pixelio.deOn 8 April 2015, the Federal Fiscal Court published two judgments regarding zero-rated intra-Community supplies within a chain transaction: XI R 30/13 and XI R 15/14 (subsequent decision in the legal case VSTR, ECJ, Sept. 27, 2012 – C-587/10).Read More »

Changes in the EU legislation (1)4 Ministers of culture asked for change in EU legislation to tax e-books exactly as physical books.

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Tour Operators Margin Scheme (TOMS)

The European Court of Justice published its judgement in an infringement procedure where the EU Commission brought several EU Member States to the Court for failure to comply with their obligations under the EU VAT Directive.

The actions relate to the special scheme for travel agents which is commonly referred to as TOMS (Tour Operators Margin Scheme) and which is relevant from an EU-wide VAT perspective. There has been some uncertainty Read More »