Issue 6 - June 2013

VAT News

A significant VAT highlight this month includes the European Commission’s announcement that 13 Member States have agreed to conduct a trial of cross-border VAT rulings between June 1, 2013 and December 31, 2013. In addition, the EU will gain its 28th Member State (Croatia) on July 1, 2013. In other important news, the geographical expansion of the B2V Pilot Program in China will be effective August 1, 2013 and the current scope of affected services will again be expanded.

The newsletter also highlights the following items of interest:

  • A ruling by the Court of Justice of the European Union (CJEU) that VAT remains due when a deduction is denied to an invoice recipient
  • An Advocate-General's opinion on the tour operators margin scheme (TOMS) infringement proceedings
  • A CJEU ruling that VAT charges on deregistration is to be based on the residual value of assets
  • A CJEU determination that Polish tax point rules are incompatible with the VAT Directive
  • A restriction on wholesale goods simplification on supplies to Germany
  • Electronic registration now possible for EU businesses that make taxable supplies in Greece
  • An update on the current framework in Greece for the recovery of VAT on the balance sheet
  • An Italian decree stating a new obligation to issue electronic invoices to public bodies
  • A brief explaining HMRC views on the VAT treatment of pensions advisory services and charges in the UK
  • VAT rate increases effective July 1, 2013 in Slovenia and Montenegro and effective June 2, 2013 in Israel
  • A landmark avoidance case regarding the application of the GST general anti-avoidance rules (GAAR) in Australia
  • An announcement in China of a special program to restrict false invoicing and fraudulent export refund claims
  • A new VAT exemption for oil and gas exploration in Indonesia
  • Guidance for the acquiring or leasing of tangible goods in Mexico from foreign residents with no Permanent Establishment (PE) in Mexico


VAT News