CJEU confirms that supplies within a VAT group are not taxable
On 11 July 2024, the CJEU issued a preliminary ruling in the case of Finanzamt T II. After several years of case law focusing on the conditions for a VAT group to exist, the CJEU has explored its financial consequences, particularly with regard to the taxation of intra-group supplies.
Netherlands may introduce VAT revision principles on Real Estate services over a EUR 30k threshold
Real Estate investors in the Netherlands may have to ramp up their VAT compliance processes to comply with planned new legislation.
VAT registration changes and Special Scheme for Small Enterprises implemented in Slovakia
Slovakia implemented VAT registration changes and Special Scheme for Small Enterprises. The turnover threshold for compulsory VAT registration will be increased and replaced by 2 new thresholds based on turnover reached within a single calendar year. Registration deadlines shall also be significantly reduced.
New administrative guidelines for VAT in the hospitality and hospitality-like sectors
Following the opinion of the French administrative Supreme Court of 5 July 2023 (n°471877) and the Finance Bill for 2024, the French VAT regime on hotels and similar activities on the one hand, and activities in the residential housing sector (student residences, retirement homes, etc.) on the other hand, have been aligned with the EU directive. The French tax authorities have just published their new guidelines following this change of law.
Constitutionality of interest rate in tax proceedings referred to the Federal Constitutional Court
The Federal Fiscal Court considers the rate used to determine interest payable in case of a suspension of law enforcement as unconstitutional and the question has been referred to the Federal Constitutional Court. Suspension interest can be incurred if a suspension of law enforcement has been granted but the tax is eventually found to be due.
VAT recoverability for transaction costs incurred by an SPV in MLBO (Merger Leverage Buy Out) transactions
VAT incurred on purchases made by an SPV, set up in the context of an MLBO transaction, should be recoverable by the target company, when the transaction costs incurred prior to the merger results from preparatory activities carried out by the SPV.
Revision of Italian Customs law with a new regulation
The Italian tax reform process, which started with the publication of Law no. 111/2023 delegating to the Government the approval of separate delegated decrees each aimed at reforming the tax regulatory framework, will involve – among others – a complete revision of the current Italian Customs regulation.
Private schooling in UK will become VATable
For school terms starting on and after 1 January 2025, private school fees in the UK will be subject to 20% VAT.
