Tax & Legal

Tax & Legal

Whistleblower Directive – transposition into German law

On 16 December 2019, the EU Directive (2019/1937) on the protection of persons who report breaches of Union law (“the whistleblower directive”) came into force. The aim of the directive is to better protect whistleblowers across the EU. EU member states have until 17 December 2021 to transpose the requirements into national law. Continue reading

Update: EU regulations force more tax transparency on multinationals

On 11 November the EU Parliament will vote on a provisional agreement with the Council that would oblige companies with an  annual revenue of more than €750 million and with operations in more than one country to declare the profits they have made, the corporate income tax paid and the number of employees in each EU country for the previous financial year. Continue reading

German Desk Italy: The transfer of inventory existing in Italy as part of a transfer of going concern carried out abroad is an autonomous supply of goods for VAT purposes

In brief

With the reply to ruling no. 637, dated 30 September 2021, the Italian tax authorities provided clarifications on the correct treatment applicable for VAT and registration tax purposes to the transfer of inventory existing in Italy included in a wider transfer of going concern carried out abroad. Continue reading

ECJ: VAT on entire amount of brokerage commission payable immediately even if fee is paid in instalments

In the case of a one-time brokerage service, the entire fee is subject to VAT in the year in which the service is rendered. This also applies if payment of the fee is spread in equal annual installments over the subsequent years. With its decision the European Court of Justice (ECJ) answers the request for a preliminary ruling submitted by the Federal Tax Court and confirms its case law that VAT is due at the time services are supplied, even where payment relating to the transaction carried out was not yet received. Continue reading

German Tax Desk Italy: Plastic Tax and Sugar Tax – Postponement to 2023 with the Budget law for 2022

The 2020 budget law (n. 160/2019) introduced two new consumption taxes under the responsibility of the Customs and Monopolies Authority: the tax on the consumption of plastic products with single use or ” MACSI ”(known as the“ Plastic Tax ”) and the tax on the consumption of sweetened beverages (known as the“ Sugar Tax ”). Continue reading

ECJ: Swimming lessons not exempt from VAT

The European Court of Justice (ECJ) dealt with the question if the provision of swimming lessons would be VAT exempt under EU VAT guidelines. The ECJ held that swimming tuition provided by a private swimming school does not fall under the exemption rule as “school and university tuition” in Article 132 (1) (i) and (j) of the VAT Directive 2006/112. Continue reading

ECJ: Decision on Spanish Goodwill Amortization

In several cases the European Court of Justice (ECJ) dismissed the appeals brought against the judgments of the General Court clarifying to some extent its complex case-law on the selectivity of tax measures, particularly in the case of measures of general application that constitute an aid scheme. The ECJ confirmed that a measure can still be selective even if the transaction benefitting from the measure is open to all undertakings. Continue reading

OECD: International tax reform moves forward

A major reform of the international tax system finalized on 8 October 2021 at the OECD will ensure that Multinational Enterprises (MNEs) will be subject to a minimum 15% tax rate from 2023. The landmark deal will also reallocate more than USD 125 billion of profits from around 100 of the world’s largest and most profitable MNEs to countries worldwide, ensuring that these firms pay a fair share of tax wherever they operate and generate profits. Continue reading