On 20 January 2021, the Court of Justice of the European Union (CJEU) gave its ruling in a case that raised the question of whether the provision of a company car to an employee is subject to VAT (C-288/19, QM v Finanzamt Saarbrücken).
It is therefore important to review the VAT treatment of cross-border transactions with the UK. Below you will find a brief summary of the main changes in this regard.
With the end of the transition period as of 1 January 2021, the UK officially became a third country with respect to the EU, meaning that the EU VAT Directive has ceased to apply to it.
In the context of a prospective acquisition of shares in a company in the telecommunications sector, and with the intention of rendering taxable management services to the target once acquired, Sonaecom purchased consultancy services consisting of a market study, for which it deducted all input VAT.
On 2 July 2020, the Court of Justice of the European Union (“CJEU”) ruled in the case of BlackRock Investment Management (UK) Ltd (C-231/19) that a “single supply” of management services,
Following a ruling of the CJEU, termination fees in the event of early termination of a contract are often triggering VAT. Especially in B2C-situations, were the customer does not have a right to recover VAT, such VAT is likely to result in a significant VAT burden for businesses.
A new bill seeks to grant a one-year extension for claims whose collection is entrusted to the Luxembourg tax authorities (such as direct taxes and social security claims) that would otherwise expire by 31 December 2020
Tax payment deadlines been extended
Companies and self-employed individuals deriving their income from a commercial, agricultural, forestry, or liberal profession and experiencing liquidity problems as a result of the COVID-19 pandemic may submit a request to the tax authorities for the following:
On 11 March 2020, Advocate General Pikamäe (the “AG”) of the Court of Justice of the European Union (the “CJEU”) released his opinion in the BlackRock Investment Management (UK) Ltd case (C-231/19) concerning the VAT treatment of management services supplied by a third-party provider to a fund manager
The Covid-19 outbreak has been declared a public health emergency of international concern by the World Health Organization, causing unprecedented impact on people's lives, businesses and communities.
