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)). Continue reading
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. Continue reading
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. Continue reading
The 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). Continue reading
The 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.
On 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). Continue reading