On 20 December 2017 the European Court of Justice (ECJ) took the view that Section 50d (3) Income Tax Act prohibiting certain intermediary foreign companies from (full or partial) refund of German withholding tax was incompatible with both the Parent-Subsidiary Directive and the freedom of establishment. The German Tax Authorities have recently issued a circular on its application of the rules. Continue reading
Tax & Legal
The finance ministry has issued a decree forbidding foreign businesses from reclaiming the VAT invoiced to them on exports or intra-community supplies from Germany. Continue reading
The finance ministry has decreed that a Supreme Tax Court case requiring a foreign business to file a full VAT return of all German inputs and outputs where its only taxable output is a VAT invoice issued in error should only be followed by foreign businesses whose refund claims have been rejected in error. Continue reading
The Supreme Tax Court has held that interest received on a tax refund due is taxable income despite the non-deductibility of interest payable on an outstanding liability. Continue reading
The Supreme Tax Court has upheld the VAT Act provision that a VAT refund claim of a non-EU/EEA company must be signed by an authorised signatory. Continue reading
The Supreme Tax Court has held that a foreign business should file an annual return for VAT showing its entire recoverable input tax for the year if it owed output tax at any time during the year for any reason. Continue reading