Indirect Tax Monthly Alert Series

A summary of important VAT and other Indirect Tax developments with implications for cross-border business operations.

Americas

Brazil

VAT

April: Brazilian Supreme Court has decided on the effects of ADC 49

March: Brazilian Government issued Provisional Measure 1,163/23, which establishes a 9.2% tax rate on crude oil exports...

February: Brazilian Government issued provisional measure changing PIS and COFINS calculation basis

January: ICMS increase

January: New PIS and Cofins rates on financial revenues

January: Consolidation of rules to PIS and Cofins

United States

VAT

June: States Stubbornly Hold on to Grocery Taxes

October: Marketplace providers face double trouble in Texas

Asia Pacific

China

VAT

January: Review of the Draft VAT Law and call for Public Consultation

Japan

VAT

2024 Tax Reform expands the scope of foreign business operators subject to Japanese consumption tax

June: Japan Fair Trade Commission’s warnings regarding the new invoice system

May: A potential reform of the tax-free sales regime for inbound tourists

March: Latest Japanese Supreme Court judgment on input JCT credit for purchase of residential apartments for future...

February: Japanese National Tax Agency tightening compliance on tax-free shop scheme

January: The NTA has published the FAQs on tax treatment in relation to NFT transactions

January: Deadline for registration of Qualified Invoice Issuer has been extended to 30 September 2023

January: Review of the JCT rules applicable to sales of social/smartphone Game Apps

Summer: National Tax Tribunal’s decision on taxpayer’s eligibility for export exemption

Japan Customs provide a new definition of “importer of record”

Europe

Belgium

VAT

CJEU requires an extension of the VAT adjustment period for significant construction works in Belgium

Belgian authorities clarify the scope of insurance premium tax and VAT for insurance-related services

Belgium extends deadline for VAT recovery information obligations of mixed and partially exempt taxable persons

Belgian VAT treatment of fuel card transactions

Mandatory structured VAT e-invoicing for B2B supplies in Belgium as of 1 January 2026

March: Draft proposal for Belgian tax reform intends to harmonize the current VAT rates and introduces an obligation for...

Denmark

VAT

October 2024: VAT recovery on share deal advisory costs

February: Recovery of VAT for Holding companies

Europe-wide

VAT

Custom: Harley-Davidson relocation of production is avoidance of customs duty

November 2024: VAT Committee Publishes Agenda and Working Papers of Its 125th Meeting

October 2024: Sale of electricity through a network of electric car charging points

August: CJEU confirms that supplies within a VAT group are not taxable

EU definition of Fixed Establishment Clarified

Vouchers can be viewed as Single Purpose Vouchers even when they are subject to transfers between taxable persons

Minutes of the 123rd VAT Committee meeting released

EU upholds the right to recover VAT on fraudulent invoices

October: 2023 Report on the VAT Gap released

Latest meeting from the Group on The Future of VAT

Summer: Suspension of the Statute of Limitations

June: Reduced VAT rates for recycled products

May: Input VAT adjustment for unused stocks

April: Illegal acquisition of electricity still subject to VAT

March: Providing evidence in case of a VAT audit

February: Bad debt relief not always available for debt insurers

January: Proof of the existence of a Carousel fraud

France

VAT

October: Draft Finance Bill for 2024 provides for amendments to the conditions for applying VAT in the hospitality and...

New administrative guidelines for VAT in the hospitality and hospitality-like sectors

French public ruling – VAT on supply of board games which include a book

French public ruling – Non-Fungible Tokens (NFTs)

French Finance Bill 2024 introduces new VAT measures

Latest meeting from the Group on The Future of VAT

Summer: Public consultation launched with respect to administrative guidelines on the “single complex transaction”...

Germany

VAT

November 2024: German Court clarifies the process for challenging tax assessments in a VAT group

October 2024: New circular of the German Federal Ministry of Finance on e-invoicing requirements

Subsequent corrections of invoices for intra-community triangular transactions

August: Constitutionality of interest rate in tax proceedings referred to the Federal Constitutional Court

Germany’s new circular regarding the VAT allocation of goods and services to business purposes

New circular of the German Federal Ministry of Finance concerning the VAT treatment of various digital services

Recent BFH judgment in Germany: Providing a valid VAT ID is not determinative for the reverse charge mechanism to apply

Ministry of Finance in Germany comments on new obligations for payment service providers

Further clarifications from German Federal Ministry of Finance regarding the turnover-based partial exemption method

October: Transfer of emission allowances – application of the reverse charge mechanism

Summer: Mandatory e-invoicing for domestic B2B transactions in Germany now envisioned for 2026 onwards

Indirect economic integration in a VAT fiscal unity

June: Mandatory e-invoicing for domestic B2B transactions in Germany as of 1 January 2025

May: New Federal Ministry of Finance Circular regarding supply chains

April: Latest German Federal Tax Court developments on VAT grouping

March: Recently introduced VAT rate of 0% for solar panel systems - New federal instructions

February: New federal instructions regarding input VAT deductions for research institutions

January: Further extension of the transition period for treating public bodies as VAT taxable persons

Ireland

VAT

VAT obligations for payment service providers in Ireland

April: Supply and Installation of Solar Panels for Private Dwellings

January: The House Loses

October: Publication of Irish Finance Bill

Italy

VAT

November 2024: Venice_Basilica_L_094710 December 2024 • 2 minute read share Secondment of personnel subject to VAT...

October 2024: VAT implications of a transfer of stock in the context of a business reorganisation between non-EU...

Secondment of personnel subject to VAT even in the absence of a profit

August: VAT recoverability for transaction costs incurred by an SPV in MLBO (Merger Leverage Buy Out) transactions

VAT recovery may not always be disallowed in Italy where a deed is declared null and void under civil law

Limitation of the purchaser’s due diligence in Italian case of VAT fraud

Third-Party Litigation Funding activities could be VAT exempt in Italy

Restrictions on VAT recoverability in relation to residential property in Italy

Incorrect reverse-charge: VAT recoverability in Italy under pro-rata regime

Italian VAT representatives only liable for transactions in which they actively participated

October: VAT refund procedure in Italy for non-resident entities

8th Directive VAT refund not allowed in the presence of a Fixed Establishment in Italy

Summer: VAT liability for Italian fixed establishments: a case-by-case analysis

June: VAT rules for “vouchers” do not apply to “discount coupons”

May: UK VAT Group: VAT treatment of transactions between Italian and UK permanent establishments

April: VAT incorrectly paid in Italy in the case of distance sales of goods taxable in another EU country may be...

March: The OSS regime cannot be used to settle incorrect transactions made before joining the scheme

February: VAT treatment of sale and lease back transactions

January: New penalty regime for “non-existent transactions” subject to VAT reverse-charge mechanism pursuant to Italian...

Other indirect taxes

August: Revision of Italian Customs law with a new regulation

Netherlands

VAT

October 2024: The tax and legal interplay in (renewable) energy projects

Dutch VAT and RETT proposals following from the annual Budget Day

Netherlands may introduce VAT revision principles on Real Estate services over a EUR30.000 threshold

Insurance and claim handling are two distinct supplies for VAT purposes in the Netherlands

Dutch Court of Appeal LFR ruling highlights need to verify location and VAT status of their customers

Spring Memorandum 2024 - indirect tax update from the Dutch parliament

Dutch government makes changes to online VAT/OSS filing portal for non-Dutch entities

Dutch judgment on the VAT treatment of transaction costs related to the sale of shares

Dutch Ministry of Finance publishes updated VAT Real Estate Decree

October: Transfer of leased building by developer constitutes a transfer of a going concern (TOGC) for Dutch VAT...

Amendment to the Real Estate Transfer Tax concurrence exemption for certain share transactions

Summer: VAT liability for Italian fixed establishments: a case-by-case analysis

June: Limitation of VAT recovery on transaction costs in M&A transactions

May: No more RETT benefit in share deals

Poland

VAT

May: Plastic tax has become a reality

January: Mandatory e-invoicing

January: VAT Groups

Romania

VAT

October 2024: Significant differences identified by the Romanian tax authorities within the RO e-VAT pre-filled returns

June: E-invoicing mandatory in Romania from 1 January 2024 for all B2B transactions

Slovak Republic

VAT

October 2024: Taxation of Financial Transactions in Slovakia from 2025

VAT rate increase in Slovakia

August: VAT registration changes and Special Scheme for Small Enterprises implemented in Slovakia

Spain

VAT

May: VAT treatment of transfers of real estate assets provided as security clarified by the Spanish General Directorate...

April: Spanish Central Administrative Court clarifies VAT recovery principles on acquisition costs for holding companies

February: Spanish Supreme Court allows VAT recovery on certain costs

January: VAT treatment of the transfer of shares in a subsidiary

The Spanish Tax Authorities issue guidelines clarifying the VAT treatment applicable in relation to company cars used by...

Sweden

VAT

VAT recovery on costs related to the sale of shares

October: Swedish Supreme Administrative Court clarifies partial exemption method

VAT recovery on costs linked to the sale of shares in Sweden

VAT recovery on acquisition costs clarified by the Swedish Supreme Administrative Court

United Kingdom

VAT

November 2024: FTT Confirms Zero-Rating for Direct Exports by Procurement International Ltd: HMRC’s Dual Supply Argument...

October 2024: UK FTT rules that the terms of the sightseeing passes were multi-purpose vouchers

FTT Rejects Company’s Appeal to Join UK VAT Group Due to Failing Fixed Establishment Tests

August: Private schooling in UK will become VATable

The UT upheld the FTT’s decision that supplies of prescription drugs and contraceptives in the UK were components of...

UK Court of Appeal refused input tax recovery for a holding company which raised funds for a taxable activity by means...

The UK Court of Appeal allows repayment of VAT paid by NHS trust on provision of car parking at hospital sites

UK taxpayer fails to recover VAT incorrectly charged by supplier from HMRC

Bolt wins UK tax tribunal VAT case against HMRC

October: VAT exemption for loan administration services

UK First-tier Tribunal decides that a company assumes liability for VAT on services (as a principal) despite its ...

Summer: UK Upper Tribunal allows input tax deduction on costs related to sale of shares in subsidiary on the basis of...

June: UK FTT upholds levy of penalties despite out of time VAT assessments

May: HMRC’s immediate priorities for VAT

April: UK FTT holds that Football agent’s fees for transfer of a Portuguese player to a football club in Italy are...

March: In UK, the tax point deeming provisions take priority over VAT grouping deeming provisions.

February: Matchmaking is not consultancy for UK VAT

January: Changes to VAT penalties and interest from 1 January 2023

January: VAT on the costs of fundraising

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Indirect Tax Monthly Alert Series

Americas

Asia Pacific

Europe

Middle East

Americas

Brazil

United States

Asia Pacific

China

Japan

Europe

Belgium

Denmark

Europe-wide

France

Germany

Ireland

Italy

Netherlands

Poland

Romania

Slovak Republic

Spain

Sweden

United Kingdom

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