Germany – The end of the simplification regulation for cross-border sales to a multitude of (smaller) businesses

In Brief

In a circular letter dated April 23rd 2018, the German Federal Ministry of Finance (FMOF) repealed the German tax authorities’ previous simplification regulation for the so-called intra-Community movement of own goods in the border area (Section 1a.2(14) of the German VAT Application Decree [Umsatzsteuer-Anwendungserlass, or UStAE]). Read More »

Luxembourg – VAT of 17% due on activity performed by directors as from 1 of January 2017

flag-of-luxembourgThe Circular 781 was published by the Tax Authorities week ago. The Circular confirms that directors’ services will be taxable in Luxembourg in case when:

The director is established in Luxembourg and supplies services to companies established in Luxembourg and / or to non-VAT taxable companies established outside Luxembourg;

The director is established abroad and supplies services to VAT taxable companies established in Luxembourg, regardless of the VAT obligations of the director in his country of establishment, in which case VAT has to be self assessed in Luxembourg by the recipients of the services under the reverse charge mechanism.

A number of questions remains open.

Please contact Marie-Isabelle Richardin at +352 49 48 48 3009
or by mail, for further details.

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 »