December 2012 Edition

VAT News

Among other developments this month, of particular importance to US multinationals is the European Court of Justice (ECJ) ruling which clarifies that sales of goods held under customs procedures are not automatically disregarded for VAT purposes. In addition, the Advocate General's opinion regarding the inclusion of holding companies in VAT groups may pave the way for increased VAT recovery in EU holding company structures. Other noteworthy developments include the imminent changes to German VAT filing procedures and the removal of the non-established business VAT registration threshold in the UK.

The newsletter also highlights the following items of interest:

  • an Economic and Financial Affairs Council meeting on the Financial Transactions Tax introduction by eleven European Union Member States
  • a draft proposal in Austria for VAT invoice amounts to be shown in Euro from January 1, 2013
  • a proposed 1% VAT rate increase in the Czech Republic for both the standard and reduced VAT rate
  • proposed legislation in Germany to extend the scope of VAT exemption from January 1, 2013
  • new invoicing rules in Romania effective January , 2013, establishing equal treatment for certain paper and electronic invoices
  • the introduction of a new online VAT registration service in the UK
  • the reversal of the Upper Tribunal ruling in the UK regarding hotel accommodations and the tour operators margin scheme
  • a further three month payment deferral of June 2012 VAT liabilities for qualifying enterprises in Vietnam
  • transitional rules for the re-implementation of British Columbia's Provincial Sales Tax in Canada
  • a reduction in the scope of imported services that qualify for VAT exemption in Chile, effective January 1, 2013


VAT News