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Tax & Legal

Zero financing does not reduce tax basis for VAT


The payment for a sale of goods is not reduced in case of a 0% financing which was arranged and borne by the seller and which is handled through a bank. The basis of assessment for VAT purposes (tax basis) is still the purchase price agreed with the buyer, even if the invoice states that the seller grants a discount in the amount of the interest. Continue reading

VAT treatment of services provided by stock exchanges and other trading platforms


In a current circular, the tax authorities generally comment on the VAT treatment of services provided by exchanges and other trading platforms for financial products and, in this respect, partially amends an earlier decree issued in 2018 with regard to trading platforms for the acquisition or trading of Bitcoin and other so-called crypto currencies. Continue reading

European Council adopts a temporary ‚Äėbuy and donate‚Äô VAT exemption


The Council of the European Union adopted an amendment to the VAT directive introducing a temporary VAT exemption on importations and on certain supplies in response to the COVID-19 pandemic. The ‚Äėbuy and donate‚Äô directive will make it easier for the Commission and EU agencies to buy goods and services to distribute them free of charge to member states in the context of the ongoing public health crisis. Continue reading

VAT: No permanent establishment in case of property rental


The European Court of Justice (ECJ) ruled that the reverse charge is applicable to the leasing of real property located in Austria because the Jersey based lessor, in lieu of own local staff to perform services relating to the letting, does not have a permanent establishment (fixed place of business) in Austria. Continue reading

Bundesrat approves the Act to Modernise Corporate Income Tax


UPDATE:

In its session on 25 June 2021, the Bundesrat gave its approval to the Act to Modernise Corporate Income Tax Law. The Bundesrat thus followed the recommendation of the Finance Committee. The law is should enter into force on 1 January 2022.

See below for more details.

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UPDATE: Bundestag approves Tax Haven Defence Act


On 10 June 2021, the Bundestag approved the “Act to avert tax avoidance and unfair tax competition and to amend other laws”. In doing so, the Bundestag followed the recommendation of the Finance Committee.

The defence mechanisms contained in the bill (19/28901) are intended to make it more difficult for individuals and companies to avoid paying taxes in Germany through business relations with states and territories that are on the EU list of non-cooperative tax jurisdictions. The measures envisaged include, for example, the denial of tax benefits or deductions.

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