November 2012 Edition

VAT News

Among other developments this month, of particular importance to US multinationals is the European Court of Justice (ECJ) decision regarding the meaning of fixed establishment for the purposes of 8th Directive VAT refund claims, which was delivered shortly before an Italian Supreme Court ruling on the same issue. Other noteworthy developments are the European Commission's e-books infringement action against France and Luxembourg, and Germany's revised proposal for the introduction of an entry certificate system.

The newsletter also highlights the following items of interest:

  • a judgment by the European Court of Justice regarding the demolition and replacement of a building
  • an opinion by the European Union Commission on 'Enhanced Cooperation' and the Financial Transactions Tax
  • a published announcement on transitional measures for the new import VAT reverse charge regime in Belgium
  • a proposed VAT rate increase in Italy from 21% to 22% effective July 1, 2013
  • an announcement in Luxembourg of mandatory e-filing from January 1, 2013
  • an optional electronic VAT registration announced in the United Kingdom effective October 15, 2012
  • an opinion issued in Serbia regarding transitional rules for the October 1, 2012 VAT rate increase
  • proposed changes in Australia to GST refund rules
  • an announcement in China that the VAT pilot program will be expanded to other industries
  • published legislation in Singapore that includes GST amendments
  • a ruling regarding the pro-rata deduction of VAT in a technology joint venture in South Korea
  • an official letter discussing the VAT treatment of non-bank lending in Vietnam
  • published guidance by South Africa regarding insurance premiums


VAT News