Michaela Merz


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India – Trade discounts are permissible deductions from total turnover and cannot be disallowed as original tax invoice issued did not indicate discount


The tax authorities have always disputed the claim of post-sale trade discounts (cash or quantity discounts) claimed by the taxpayers on the ground that the said discounts were not linked to any sale invoices. Hence, claim of deduction towards such discounts from the sales turnover were disallowed. Continue reading


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EU – Fraud Assessment and Intelligence Tool (FAIT)


Effective assessment and monitoring of risks associated with business partners

Carousel frauds have recently become a hot topic in Eastern Europe. Tax authorities investigate hundreds of cases and suspicious schemes also based on information received from the VAT control statements. Continue reading


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Invitation VAT Compliance Fair – Join us in exploring the VAT technology universe!


vat-complianceI would like to draw your attention to our first VAT Compliance Fair , which will take place on February 21, in Zurich.

As businesses, we’re living in a world, which is becoming increasingly globalised, with the adoption of more and more VAT and other indirect taxes. Tax authorities are requesting more detailed transactional information than ever before – and more quickly. Continue reading


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France – VAT rate changes as per 1 of January 2014


The French tax authorities have reconfirmed in the recent Finance Bill that the VAT rate changes will take effect on 1 January 2014. The standard rate will increase from 19.6% to 20%. The intermediate rate will be increased from 7% to 10%. This rate will apply to various goods and services including restaurants and meals for immediate consumption, passenger transport, hotel accommodation, pharmaceutical products not reimbursed by social security and transfers of copyrights. Continue reading


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Supply of electronic services within the EU as from 2015


Under the current EU law suppliers, who are not established within the EU, providing electronic services to non VAT registered customers (BtoC), have to account and pay VAT at the VAT rate of the member state in which the service recipient is domiciled. As from 2015 this rule will also apply to suppliers established within the EU which until 2015 can apply the VAT rate of the member state of their establishment. Continue reading


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Netherlands – Tax Authorities actively looking for VAT payable on the balance sheet


The Dutch Tax Authorities have announced that they will start  investigating businesses to see whether they have amounts of VAT payable on their balance sheets. In practice, many businesses have an amount of VAT payable on the balance sheet for different reasons. Continue reading


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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. Continue reading