Income tax and VAT aspects of technical improvements to leased assets
The termination of a lease of premises to which the lessee carried out technical improvement may have significant tax implications for both the lessee and the lessor. If, with the lessor's consent, the lessee makes technical improvement to the…
GFD Information on changes to VAT payer status and registration procedure
In connection with the amendment to the VAT Act effective from 1 January 2025, the GFD issued Information on the VAT payer status and registration procedure. The information provides more precise guidance on when a taxable person becomes a VAT payer…
Fuel cards and VAT: What does new GFD’s information contain?
At the end of last year, the General Financial Directorate (GFD) issued long-awaited information on fuel cards following the much-discussed CJEU judgment of May 2019 in the Vega International Car Transport and Logistic case and the conclusions of…
E-invoicing has green light in Germany
From 1 January 2025, companies established in Germany are obliged to use electronic invoicing for all transactions between local business partners. This makes Germany the first country to introduce e-invoicing under the approved VAT in the Digital…
CJEU: Can VAT be deducted on unnecessary shared services
In Weatherford Atlas Gip SA (C-527/23), the Court of Justice of the European Union held that the tax authority cannot deny a VAT deduction solely on the grounds that the services purchased were not necessary or appropriate for the company’s economic…
Coordination Committee clarifies VAT treatment of employee benefits, leaves open symbolic payment issue
The Coordination Committee of the Chamber of Tax Advisors and the General Financial Directorate recently discussed a paper on the VAT treatment of employee benefits and the symbolic payment for a taxable supply. The discussion conclusions confirmed…
Amendment to VAT Act in effect from new year
The amendment to the VAT Act introduces several key changes that will affect all VAT payers. Selected changes have a delayed effect - e.g., changes in immovable property will apply from 1 July 2025, while some changes in financial services will take…
CJEU: VAT application upon contract termination
The Court of Justice of the European Union (CJEU) has addressed the issue of applying VAT upon the withdrawal from a contract for services. The court concluded that any amount to be paid after withdrawal from a contract for the supply of services is…