In this update, we provide a summary of important VAT, Customs and Environmental Tax developments from September with implications for global business operations.
CJEU requires an extension of the VAT adjustment period for significant construction works in Belgium
In a recent decision (judgment of 12 September 2024 in case C-243/23), the Court of Justice of the European Union found that for significant construction works with an extended economic useful life, the same VAT adjustment period (currently 15 years in Belgium) should apply as in respect of immovable property considered "new" for VAT purposes.
Subsequent corrections of invoices for intra-community triangular transactions
The German Federal Fiscal Court has recently published a judgment implementing the latest CJEU case law on the subsequent correction of invoices in the case of intra-community triangular transactions in Germany. Accordingly, a subsequent correction is not sufficient to fulfil the conditions of the simplified triangulation.
Secondment of personnel subject to VAT even in the absence of a profit
The Italian Supreme Court has confirmed that secondment arrangements, including those structured as cost reimbursements without a profit margin, are subject to VAT regardless of contrary to domestic provisions. This decision is in line with ECJ case law, which requires VAT to be applied whenever there is a reciprocal relationship involving consideration, regardless of profitability.
Dutch VAT and RETT proposals following from the annual Budget Day
The government plans to abolish the reduced VAT rates for cultural goods, services and lodging, decrease the RETT rate for investments in residential real estate to 8% and implement real estate services to revision principles from 1 January 2026.
VAT rate increase in Slovakia
From 2025 Slovakia will increase the basic VAT rate to 23%. The negative effects of this increase shall be compensated by decreased VAT rates of 5% and 19% applicable to certain goods and services, especially food and medicine.
FTT Rejects Company’s Appeal to Join UK VAT Group Due to Failing Fixed Establishment Tests
FTT rules: The UK branch lacks resources for fixed establishment for VAT grouping but rejects HMRC’s narrow scope and arguments on the protection of the revenue.
