Categories: European Court of Justice (58 found)

1. 01.12.2022

   ECJ with two landmark decisions on German VAT group requirem ...

   Today, the European Court of Justice (ECJ) published two long-anticipated decisions dealing with German VAT groups. Following our preliminary, quick review of the decision, a “crash” of the current VAT group concept has not transpired. Whilst on the one hand, the financial integration in a VAT group may be eased in future, on the other hand, the ECJ addresses an “independence” of the VAT group affiliates – the practical impact of which is unclear for the time being.

   Categories: European Court of Justice

   Keywords: VAT group, financial integration
2. 27.11.2022

   ECJ: Refusal of input VAT deduction in case of fraud also fo ...

   Both the first and the second purchaser in a supply chain may be denied the deduction of input VAT in the full amount if they were aware of a VAT fraud. The alternative brought by the referring German Tax Court to limit the non-deductible input VAT amount to the actual tax loss suffered by the State was rejected by the ECJ.

   Categories: European Court of Justice

   Keywords: VAT fraud, input VAT deduction
3. 23.11.2022

   EU money laundering directive: General access to information ...

   Following two requests from Luxembourg for a preliminary ruling the European Court of Justice held that the national provision whereby the information on the beneficial ownership of companies incorporated within the EU is accessible in all cases and to any member of the general public to be invalid.

   Categories: European Court of Justice

   Keywords: register of companies, Money laundering
4. 18.11.2022

   ECJ: No output VAT on the value of reward retail vouchers of ...

   The European Court of Justice held that the issue of vouchers for third-party retailers to employees by a taxable person as part of a recognition program for high-performing employees do not constitute a supply “for the private use of the entrepreneur or for that of his staff or, more generally, for purposes other than those of his business” within the meaning of Article 26(1)(b) of the VAT Directive.

   Categories: European Court of Justice

   Keywords: private use, voucher
5. 20.10.2022

   ECJ: Joint and several liability of legal entities for Value ...

   The European Court of Justice decided that the VAT Directive does in certain defined circumstances not preclude a national regulation providing for an automatic joint and several liability for VAT debts and late payment interest thereon. In its current judgment the ECJ specifically confirmed that the Bulgarian regulation on automatic joint and several liability for VAT debts of a legal entity does not violate EU law. This applies, for example, if the jointly and severally liable person is the managing director of the legal entity.

   Categories: European Court of Justice

   Keywords: liability for VAT, secondary VAT liabili ...
6. 14.10.2022

   ECJ confirms German penalty charges for failure to submit su ...

   The European Court of Justice (ECJ) decided that the German penalty surcharge for failure to present proper documentation in cross border business relations is in line with the EU principle of freedom of establishment. Although there is a restriction because the documentation requirements and the associated penalty only apply to taxpayers engaged in business relationships with related parties abroad, the measures are proportionate, don’t go beyond what is necessary to attain the objective pursued and are necessary to ensure a balanced taxation powers between Member States.

   Categories: European Court of Justice

   Keywords: documentation, cross border transactions
7. 10.10.2022

   ECJ: Financing services provided through sub-participation e ...

   According to the ECJ, financing provided to the originator under a sub-participation agreement is a VAT exempt transaction and complies with the exempt transactions listed Article 135(1)(b) of Council Directive 2006/112/EC (VAT Directive) concerning “the granting and the negotiation of credit and the management of credit by the person granting it”.

   Categories: European Court of Justice

   Keywords: Credit, Financial Services (FS) / Finanz ...
8. 04.10.2022

   ECJ: VAT invoice requirements in case of leasing

   In a request for a preliminary ruling from the Supreme Court of Slovenia the European Court of Justice had the opportunity once again to comment on the invoice requirements, this time with respect to an input VAT deduction in the course of finance lease agreements in accordance with Article 203 of the VAT Directive 2006/112/EC.

   Categories: European Court of Justice

   Keywords: Leasing, invoice
9. 23.09.2022

   ECJ: Final losses of UK branch not deductible for German par ...

   In its decision of 22 September 2022, the European Court of Justice upheld the German rule that the final losses of a permanent establishment (PE) located in the United Kingdom are not deductible for the German head office (parent company). This practice is not contrary to the principle of freedom of establishment. There is no obligation under EU law to take such losses into account because Germany as the state of residence has waived its power to tax the profits (and losses) of its UK PE under the UK/German double tax treaty.

   Categories: European Court of Justice

   Keywords: Final PE losses, foreign branch losses
10. 20.09.2022

    Input VAT in case of insolvency of the seller may be deducti ...

    In a preliminary request from Lithuania the European Court of Justice has ruled that it is contrary to EU law for the local tax authority to deny an input VAT deduction on the grounds of alleged abuse of rights solely because the seller is insolvent, and the buyer was aware of this situation.

    Categories: European Court of Justice

    Keywords: VAT fraud, input VAT deduction
11. 19.09.2022

    UK Group Transfer Rules tested before the ECJ

    In a reference for a preliminary ruling from the UK Upper Tribunal the European Court of Justice (ECJ) is asked whether the immediate tax charge on a transfer of assets from a UK resident company to a sister company resident in Switzerland (which does not carry on a trade in the UK through a permanent establishment) contrasts with EU-Law (Article 49 TFEU or Article 63 TFEU).

    Categories: European Court of Justice

    Keywords: Knowledge Transfer (KT) / Wissenstransfe ...
12. 09.09.2022

    ECJ: Place of import of transport vehicle and payment of imp ...

    Following up on a preliminary request from the Hamburg Tax Court the European Court of Justice (ECJ) had to decide on the place of importation for VAT purposes of a transportation vehicle purchased in Georgia which was brought into the EU in breach of customs legislation. The ECJ held the place of importation to be Germany, that is where the owner of the car resides and where the car is ultimately in use.

    Categories: European Court of Justice

    Keywords: place of taxation, motor vehicle, import ...
13. 09.09.2022

    ECJ: No input VAT recovery for management holding company

    The European Court of Justice decided that a holding company with taxable output services to its subsidiaries is not entitled to deduct input tax if the input services received are not directly and immediately related to the holding company's own sales, but rather to the largely tax-exempt activities of the subsidiaries.

    Categories: European Court of Justice

    Keywords: economic activity, input VAT deduction, ...
14. 17.06.2022

    German withholding tax refund requirements for non-resident ...

    The German rules on the procedure and documentation requirements for withholding tax refunds to non-resident portfolio shareholders are not compatible with the EU principles on the free movement of capital, as the European Court of Justice (ECJ) said in a most recent decision.

    Categories: European Court of Justice

    Keywords: portfolio dividend, documentation, refun ...
15. 27.05.2022

    ECJ: Refusal to allow the utilization of foreign branch fina ...

    Following the request for a preliminary ruling from the German Supreme Tax Court, the European Court of Justice (ECJ) is called to decide whether a German parent company has the right to deduct from its taxable income losses incurred by its UK branch, which had ceased activity and thus could no longer utilize its accumulated tax losses in the UK. In his Opinion, the Advocate General has suggested that the German rules denying the import of losses of foreign branches are not contrary to the EU principles of freedom of establishment.

    Categories: European Court of Justice

    Keywords: final loss, foreign branch losses, head ...
16. 23.05.2022

    ECJ and VAT: No fixed establishment through subsidiary provi ...

    In a recent judgment the European Court of Justice (ECJ) held that a German company does not maintain a fixed establishment through its Romanian subsidiary where the latter actively promoted the products of the German company in Romania based on marketing, advertising and regulatory strategies established and developed by the German parent.

    Categories: European Court of Justice

    Keywords: permanent establishment, marketing subsi ...
17. 09.05.2022

    ECJ: VAT treatment of city-card for tourists as multi-purpos ...

    In a Swedish reference for a preliminary ruling, the European Court of Justice (ECJ) had a first opportunity to comment on the distinction and VAT treatment of single-purpose vouchers and multi-purpose vouchers in Article 30a of the VAT Directive. According to the ECJ, the city-card of Stockholm can be viewed as a multi-purpose voucher as mentioned in Article 30a (3) VAT Directive, provided it meets the criteria for a voucher as set in Article 30(1) which is finally to be confirmed by the referring court.

    Categories: European Court of Justice

    Keywords: VAT, voucher, multiple-purpose voucher
18. 31.03.2022

    ECJ: Withholding tax on notional interest in case of interes ...

    In a Bulgarian case the European Court of Justice (ECJ) held that EU law does not preclude national legislation imposing withholding tax on notional market-based interest (mandated under local tax anti-avoidance rules). Such withholding tax cannot be exempt under the regimes of the IRD (EU Interest - Royalty Directive 2003/49/EC) and the PSD (EU Parent-Subsidiary Directive 2011/96/EU) as there have been no actual payments of interest.

    Categories: European Court of Justice

    Keywords: notional tax, interest-free loan, notion ...
19. 25.03.2022

    Documentation requirements for refund of withholding tax on ...

    In his Opinion of 20 January 2022, the Advocate General (AG) suggests to the European Court of Justice (ECJ) that Germany’s requirements for withholding tax claims filed by non-resident corporate taxpayers with seat or place of management in the EU or EEA are too strict in two respects and thus in violation of Article 63 TFEU on the free movement of capital.

    Categories: European Court of Justice

    Keywords: portfolio dividend, documentation, withh ...
20. 22.03.2022

    Portuguese dividend withholding tax for foreign UCITS in bre ...

    Does the free movement of capital require a Member State to tax non-resident and resident investment vehicles according to the same tax system? This is the question raised in the request for a preliminary ruling submitted to the European Court of Justice (ECJ) by the Portuguese tax court (Tax Arbitration Tribunal). Contrary to the Opinion of the Advocate General the ECJ decided that the withholding tax on dividends paid to non-resident Undertakings for Collective Investments in Transferable Securities (UCITS) is in violation with current EU Law.

    Categories: European Court of Justice

    Keywords: UCITS, portuguese dividend withholding t ...
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