Financial Services VAT Alert - Archive 2011

Issues in Edition 2012/09

  • Belgium: Government approves indirect tax measures as part of recovery strategy
  • European Union
    -
    ECJ confirms input tax deductibility for holding companies (Portugal Telecom, case C-496/11)
    - Developments in infringement procedures regarding VAT Grouping
    - ECJ has hearing in Wheels case C-424/11 (Wheels Common Investment Fund, case C-496/11)
    - Commission in favour of excluding branch income from pro rata (Société Le Crédit Lyonnais, case C-388/11)
    - ECJ rules that refund claims are valid if no supplies are made in Member State of refund (Daimler & Widex, cases C-318/11 & C-319/11)
    - AG ECJ: advisory services could constitute VAT exempt asset management (GfBk, case C-257/11)
    - ECJ decision: national restriction of pro rata based on turnover only permitted in ascertained cases (BLC Baumarkt GmbH & co, case C-511/10)
    - Green light for European Financial Transaction Tax
    - Commission considers recharged insurance premium VAT exempt
    - ECJ rules that VAT refunds cannot be delayed due to arithmetic checks (Mednis SIA, case C-525/11)
  • Finland: VAT rates subject to change in Finland as of 1 January 2013
  • Germany
    - German Federal Tax Court decided on the Deutsche Bank case
    - Urgent action required for filing VAT returns
    - New invoicing requirements effective 1 January 2013
    - Extension of VAT credit for non-EU insurance supplies
  • Hungary: Additional VAT declaration from 1 January 2013
 
  • Italy
    - Proposed increase of VAT rate effective 1 July 2013
    - Supreme court rules VAT registration creates fixed establishment
    - Change in VAT treatment of the supply and lease of buildings
    - Change in the VAT treatment of the discretionary investment management services
    - Possible new invoicing legislation as per 1 January 2013
  • Lithuania: Credit agreement termination fee regarded as VAT exempt income in Lithuania
  • Luxembourg
    - Decree amending VAT rules for independent group of persons published
    - Extended scope of the VAT exemption applicable to the management of investment funds
    - Mandatory e-filing from 1 January 2013
  • Netherlands
    - Proposed increase of insurance premium tax as of 1 January 2013
    - Proposed Financial Transaction Tax
    - Questions to ECJ on VAT treatment of discount cards
  • Poland
    - Amendment of the Polish VAT Act as of 1 January 2013
    - Separate telemarketing activity performed with respect to the sale of insurance cannot benefit from VAT exemption
    - Financing provided to the factorer by the bank within a non-genuine factoring stipulates a taxable service
  • Portugal: New invoicing rules effective 10 October 2012
  • Romania: Possible infringement procedure against Romania
  • Slovakia: Invoicing rules for the supply of insurance and financial services from 1 January 2013
  • Spain: Andorra to introduce VAT system from 1 January 2013
  • United Kingdom
    - Tax authority guidance on VAT cost sharing exemption
    - Judicial review denied for output VAT adjustment
 
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Issues in Edition 2012/08

  • European Union
    - ECJ rules that the availability of compound interest is a matter of Member States (UK)
    - National legislation that limits a monthly VAT refund is inconsistent with VAT law (LV)
    - Complete VAT Committee guidelines published
  • Denmark: Tax on general insurance premiums from 1 January 2013
  • France: Proposed reversal of decision to increase VAT rate from 19,6% to 21,2%
  • Germany
    - Simplification rules for e-invoicing
    - German Federal Tax Court denies VAT exempt granting of credit in factoring transactions
    - Settlement of damage events not regarded as consulting or similar services
 
  • Netherlands
    - Dutch Ministry of Finance published a brochure with Q&A concerning the VAT increase as of 1 October 2012
    - VAT exemption for insurance intermediation applicable in multiple links of the intermediation chain
    - The sale of warranty certificates connected to a sale of a good is a separate service that follows he VAT treatment of the supply of the good
  • Poland
    - Entity performing purchases using fleet cards is not entitled to deduct input VAT from invoices issued by fleet card provider
    - Damage assessment services provided by freelancers for the benefit of insurance companies should be VAT exempt
 
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Issues in Edition 2012/06-07

  • European Union
    - ECJ rules on scope of exemption for transactions including negotiations in shares in a ‘real estate company’
    - ECJ hears fund management exemption case
    - ECJ rules that discretionary portfolio management services are VAT taxable
  • Italy: Intra-EU reporting penalties effective from 1 August 2012
  • Latvia: Reduced VAT rate from 1 July 2012
  • Netherlands: Transitional regime for VAT rate increase
  • Russia: Scope of the VAT exemptions extended for financial services as of 1 January 2013
  • Spain: Increases of the Spanish Value Added Tax rates
 
  • Poland
    - Convoy of money exempt from VAT
    - Damage liquidation services provided to insurer should be VAT exempt
    - Auxiliary activities performed with respect to financial intermediary services do not benefit from VAT exemption
    - Risk management services, being services ancillary to financial services, should be VAT exempt
    - Purchasing defaulted debts at a price below their face value does not result in a supply of services for consideration
    - General interpretation regarding damage liquidation process provided by an intermediary
  • United Kingdom: Tax authorities reacts to 'Banca Antoniana' judgment on tax refunds
 
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Issues in Edition 2012/05

  • European Union
    - Advocate-General's opinion in Deutsche Bank AG: individual portfolio management not VAT exempt
    - Opinion of the Committee of the Regions on a common system of taxation of financial transactions
    - Expert study on the feasibility and economic impact of a common EU standard VAT return
  • Czech Republic
    - Increased VAT rates as of 2013
    - Amendment of the Czech VAT Act
 
  • Netherlands
    - No further appeal in Court judgment about the provision of 'leads' being VAT exempt
    - New Dutch VAT rules regarding the VAT liability for the supply of mobile phones and computer parts, effective 1 June 2012
    - Refund of Dutch VAT beyond the VAT Directive's deadline, only possible by submitting paper requests
    - VAT rate increased to 21%, effective 1 October 2012
 
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Issues in Edition 2012/04

  • European Union
    - ECJ rules pre-registration input VAT recoverable
    - Commission Proposal for EU Directive on Financial Transactions Tax dismissed
  • Czech Republic: Draft legislation on 2013 invoicing changes
  • Germany: German treatment of the cost sharing exemption
  • Greece: New procedure for processing VAT refunds
  • Italy: Proposed tax and VAT reform project
  • Luxembourg: VAT audits in the financial sector
  • Netherlands
    - Latest Dutch austerity measures agreed: VAT increase from 19% to 21% per October 2012
    - Transfer of insurance portfolio qualifies as a transfer of a going concern
    - Provision of 'leads' VAT exempt
    - Point of view of the Dutch Tax Authorities regarding VAT consequences of prohibiting fees for insurance mediation
 
  • Poland
    - Risk assessment and monitoring services are VAT exempt services
    - Financial intermediary services are VAT exempt services
    - Bank is entitled to include the result on derivatives transactions in its pro rata calculation in every calculation period
    - Activities performed by companies, being a part of the Cash Pooling structure, cannot be treated as services within the meaning of the Polish VAT Act
    - Amounts transferred to the lesser after the termination of the lease contract are the usual payments for leased object delivery
  • Switzerland: Federal Tax Administration published interpretation of the notion of intermediary
  • United Kingdom: HMRC issues draft guidance on implementing the cost sharing exemption
 
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Issues in Edition 2012/03

  • European Union
    - Commission in favour of exemption for discretionary fund management
    - ECJ gives output VAT answer to input VAT question
    - ECJ rules on VAT treatment of assets put to private use
    - Subsidies do not affect VAT recovery in fully taxable business sector
    - Financial Transactions Tax – latest developments
    - Opinion on temporary private use of business assets
  • Austria: The Administrative VAT Guidelines Amendments Decree 2011
  • Denmark: Danish Tax Tribunal VAT exempts management of venture funds as a special investment fund
  • Germany: The Federal Tax Court decided the GFKL case
 
  • Italy
    - VAT deduction by leasing companies adopting International Accounting Principles
    - Tax Authority clarifies VAT treatment of pension fund management
    - Reverse charge invoicing rules for intra-Community supplies of services
    - Community Law – Changes in the time of supply of services
    - Place of storage of invoices and other documents relevant for tax purposes
  • Portugal
    - Approval of Madeira VAT rate increase to 22%
  • Slovakia
    - Obligatory electronic filing of documents with the Slovak Authorities postponed to 1 January 2013
  • United Kingdom
    - Tax Authority statement on ‘large business’ relationships
    - ‘Grant funding’ was payment for taxable services
    - Court of Appeal allows Tax Authority’s appeal in payment handling case
 
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Issues in Edition 2012/02

  • European Union
    - Preliminary questions to the ECJ on the qualification of a pension fund as a “special investment fund”
    - Regulation on administrative cooperation and fraud prevention in VAT adopted
  • Austria
    - Consolidation package restricts input VAT deduction related to the outsourced construction of buildings
  • Czech Republic
    - Local reverse charge mechanism on construction work
  • Denmark
    - Proposed change to financial sector VAT recovery from 1 April 2012
  • France
    - President announces VAT rate increase to 21.2% effective 1 October 2012
  • Hungary
    - Extended VAT refund deadlines effective 1 February 2012
 
  • Italy
    - New threshold for quarterly VAT payments
    - New financial institutions ‘e-money’ declaration due by 30 April 2012
  • Latvia
    - New VAT reporting rules for reverse charge supplies
  • Luxembourg
    - Commission action against Luxembourg on cost-sharing exemption
  • The Netherlands
    - VAT adjustment for private use 2011
  • Slovakia
    - Obligatory electronic filing of documents with the Slovak Tax Authorities as of 1 April 2012
  • Sweden
    - Supply of insurance in connection with short term rental of cars is deemed ancillary to the VAT taxable rental service
  • United Kingdom
    - Legislation on electronic submission of VAT returns
 
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Issues in Edition 2012/01

  • European Union
    - Polish Presidency Progress report regarding the VAT treatment of insurance and financial services
    - Summary of main EU VAT changes in 2012
  • Denmark
    - The Danish tax authorities´ interpretation of the ECJ case AB SKF
  • Germany
    - Termination of a VAT group in case of insolvency
    - Share deal as transfer of going concern
    - Input VAT deduction and correction: changes in position of fiscal authority
 
  • Italy
    - No limit for the supplier to charge assessed VAT to its customers and right to deduct it by the latter
  • The Netherlands
    - New Decree on deduction of input VAT
  • Romania
    - Tax authorities to cancel VAT registration of dormant companies
  • United Kingdom
    - Court of Appeal allows HMRC’s appeal in payment handling case: Axa UK plc.
 
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