ECOFIN adopts a directive making the 15% minimum standard rate permanent
- Details
During its meeting of June 22, 2018 the Economic and Financial Affairs Council (ECOFIN) adopted a Council Directive amending Directive 2006/112/EC on the common system of value added tax as regards the obligation to respect a minimum standard rate. By doing so ECOFIN is making the 15% minimum standard rate a permanent feature of a new VAT system.
Read more: ECOFIN adopts a directive making the 15% minimum standard rate permanent
ECOFIN approves cooperation agreement between the European Union and Norway
- Details
During its meeting of June 22, 2018 the European Economic and Financial Affairs Council (ECOFIN) approved the Agreement between the European Union and the Kingdom of Norway on administrative cooperation, combating fraud and recovery of claims in the field of value added tax, which was signed in Sofia on February 6, 2018.
Read more: ECOFIN approves cooperation agreement between the European Union and Norway
The OECD releases Revised Guidance on the Application of the Transactional Profit Split Method (BEPS Action 10)
- Details
On June 21, 2018 the OECD released Revised Guidance on the Application of the Transactional Profit Split Method (BEPS Action 10). The revised guidance, while not being prescriptive, clarifies and significantly expands the guidance on when a profit split method may be the most appropriate method.
The OECD releases Guidance for Tax Administrations on the Application of the Approach to Hard-to-Value Intangibles (BEPS Action 8)
- Details
On June 21, 2018 the OECD released Guidance for Tax Administrations on the Application of the Approach to Hard-to-Value Intangibles (BEPS Action 8). The guidance contained in the report aims at reaching a common understanding and practice among tax administrations on how to apply adjustments resulting from the application of the Hard-to-Value Intangibles (HVTI) approach. The guidance should improve consistency and reduce the risk of economic double taxation.
CJEU judges in Case C-480/16, Fidelity Funds and Others (Freedom to provide services – Taxation of undertakings for collective investment)
- Details
On June 21, 2018 the Court of Justice of the European Union (CJEU) judged in Case C-480/16, Fidelity Funds, Fidelity Investment Funds, Fidelity Institutional Funds versus Skatteministere (ECLI:EU:C:2018:480).
This request for a preliminary ruling concerns the interpretation of Articles 56 and 63 TFEU.
The request has been made in proceedings brought by Fidelity Funds, Fidelity Investment Funds and Fidelity Institutional Funds against the Skatteministeriet (Ministry of Taxation, Denmark), concerning claims for repayment of withholding tax levied on dividends paid to them by companies resident in Denmark between 2000 and 2009.
CJEU judges in Case C-108/17, Enteco Baltic (VAT – VAT Exemption for importation followed by an exempt intra-Community supply – Goods dispatched or transported from a third country to a Member State other than the Member State of arrival)
- Details
On June 20, 2018 the Court of Justice of the European Union (CJEU) judged in Case C-108/17, UAB ‘Enteco Baltic’ versus Muitinės departamentas prie Lietuvos Respublikos finansų ministerijos, intervener: Vilniaus teritorinė muitinė (ECLI:EU:C:2018:473).
This request for a preliminary ruling concerns the interpretation of Article 138, Article 143(1)(d) and Article 143(2) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ 2006 L 347, p. 1), as amended by Council Directive 2009/69/EC of 25 June 2009 (OJ 2009 L 175, p. 12), (‘the VAT Directive’), and of the principles of tax neutrality and the protection of legitimate expectations.
The request has been made in proceedings between UAB ‘Enteco Baltic’ and the Muitinės departamentas prie Lietuvos Respublikos finansų ministerijos (Customs Department at the Ministry of Finance, Lithuania) (‘the Customs Department’) concerning the exemption from value added tax (VAT) of imports of fuel from Belarus into Lithuania followed by dispatch or transport of the fuel to other Member States.
Kazakhstan has signed the MCAA on the Exchange of Country-by-Country Reports
- Details
From the overview of Signatories of the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports (CbC MCAA) as available on the website of the OECD we understand that as per June 12, 2018 the total number of signatories to the CbC MCAA went up to 70.
From the overview we furthermore understand that Kazakhstan signed the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports (CbC MCAA) on June 12, 2018 and by doing so it became the latest signatory to the CbC MCAA.
Read more: Kazakhstan has signed the MCAA on the Exchange of Country-by-Country Reports
Singapore and Kenya concluded a DTA
- Details
On June 12, 2018 the Government of the Republic of Singapore and the Government of the Republic of Kenya signed an Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (Hereafter: the DTA).
Although the DTA has been signed, it has not entered into force yet. For the DTA to enter into force, the respective ratification procedures have to have been finalized in both countries.
Below we will discuss a selection of provisions included in the DTA of which we think they might interest our readers.
Liechtenstein Parliament approves amendments to the Liechtenstein tax code as follow up to the conclusions of the EU Code of Conduct Group
- Details
On June 14, 2017 the Liechtenstein Government issued a press release announcing that during its meeting of June 7, 2018 the Liechtenstein Parliament approved amendments to the Liechtensten tax code. The reason for amending the tax code was the review of the Liechtenstein tax code by the EU Code of Conduct Group with regard to tax transparency, fair taxation of companies and implementation of the BEPS minimum standards.
CJEU judges in Case C-39/17, Lubrizol France (Free movement of goods)
- Details
On June 14, 2018 the Court of Justice of the European Union (CJEU) judged in Case C-39/17, Lubrizol France SAS versus Caisse nationale du Régime social des indépendants (RSI) participations extérieures (ECLI:EU:C:2018:438).
This request for a preliminary ruling concerns the interpretation of Articles 28 and 30 TFEU.
The request has been made in proceedings between Lubrizol France SAS (‘Lubrizol’) and the Caisse nationale du Régime social des indépendants (RSI) participations extérieures (National Fund coordinating the Social Security Scheme for Self-Employed Workers (RSI), External Interests, ‘the CNRSI’) concerning the calculation of the basis of assessment for the corporate social solidarity contribution (‘the C3S’) and the additional contribution to the C3S (together, ‘the contributions at issue’) owed by Lubrizol for the year 2008.
Read more: CJEU judges in Case C-39/17, Lubrizol France (Free movement of goods)
CJEU judges in Case C-421/17, Polfarmex (VAT – Transfer of immovable property by a public limited company to a shareholder in connection with the redemption of its shares)
- Details
On June 13, 2018 the Court of Justice of the European Union (CJEU) judged in Case C-421/17, SZEF Krajowej Administracji Skarbowej versus Polfarmex Spółka Akcyjna w Kutnie (ECLI:EU:C:2018:432).
This request for a preliminary ruling concerns the interpretation of Article 2(1)(a) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ 2006 L 347, p. 1; ‘the VAT Directive’).
The request has been made in proceedings between the Szef Krajowej Administracji Skarbowej (Director of the National Tax Board, Poland) and Polfarmex Spółka Akcyjna w Kutnie (‘Polfarmex’) concerning a tax ruling issued to that company by the Minister Finansów (Minister for Finance, Poland; ‘the Minister’), by which the Minister held that a transaction whereby Polfarmex intends to transfer property to a limited liability company, holder of shares issued by Polfarmex, as payment for those shares, under a buy-back procedure permitted by national legislation, is subject to value added tax (VAT).
CJEU judges in Case C-665/16, Gmina Wrocław (VAT – Transfer of the ownership of immovable property owned by a municipality to the State Treasury)
- Details
On June 13, 2018 the Court of Justice of the European Union (CJEU) judged in Case C-665/16, Minister Finansów versus Gmina Wrocław (ECLI:EU:C:2018:431).
This request for a preliminary ruling concerns the interpretation of Article 14(2)(a) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ 2006 L 347, p. 1) (‘the VAT Directive’).
The request has been made in proceedings between the Minister Finansów (Minister for Finance, Poland; ‘the Minister’) and the Gmina Wrocław (Municipality of Wrocław, Poland; ‘the Municipality’), concerning the liability to value added tax (VAT) of a transaction in which ownership of immovable property belonging to the Municipality was transferred, in accordance with national legislation and in return for the payment of compensation, to the Public Treasury for the purposes of the construction of a national road.
CJEU judges in Case C-650/16, Bevola and Jens W. Trock (Freedom of establishment – Deductability of PE losses)
- Details
On June 12, 2018 the Court of Justice of the European Union (CJEU) judged in Case C-650/16, A/S Bevola, Jens W. Trock ApS versus Skatteministeriet (ECLI:EU:C:2018:424).
This request for a preliminary ruling concerns the interpretation of Article 49 TFEU.
The request has been made in proceedings between A/S Bevola and Jens W. Trock ApS, companies incorporated under Danish law, and the Skatteministeriet (Ministry of Finance, Denmark) concerning the Danish authorities’ refusal to allow Bevola to deduct from its taxable income the losses incurred by its Finnish establishment.
Liberia signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters
- Details
Based on the overview of Jurisdictions Participating in the Convention on Mutual Administrative Assistance in Tax Matters as available on the website of the OECD, on June 11, 2018 Liberia signed the Amended Convention on Mutual Administrative Assistance in Tax Matters.
The opinion of the AG in Case C-135/17, X (Free movement of capital – Interpretation of the standstill provision of the EC (now TFEU))
- Details
On June 5, 2018 on the website of the Court of Justice of the European Union (CJEU) the opinion of Advocate General Mengozzi in the Case C-135/17, X-GmbH versus Finanzamt Stuttgart-Körperschaften (ECLI:EU:C:2018:389) was published. Unfortunately the opinion is not available in the English language. It is however available in several other languages, like a.o. German, French and Italian.
European Commission requests Latvia to align its rules regarding the VAT reverse charge mechanism with the VAT Directive
- Details
On June 7, 2018 the European Commission published its “June infringements package: key decisions”. The June infringements package includes several key decisions in the area of Taxation and Customs Union. One of the interesting key decisions is the decision to request Latvia to align its rules regarding the VAT reverse charge mechanism with the VAT Directive.
De opinie van de AG in C-135/17, X (Vrij verkeer van kapitaal – Standstillbepaling – Bestrijding van volstrekt kunstmatige constructies)
- Details
Op 5 juni 2018 is op de website van het Europese Hof van Justitie (CJEU) de opinie van Advocaat-Generaal Mengozzi in de Zaak C-135/17, X-GmbH tegen Finanzamt Stuttgart-Körperschaften, (ECLI:EU:C:2018:389) gepubliceerd.
CJEU judges in Case C-49/17, Koppers Denmark (Taxation of energy products and electricity – Article 21(3) of Council Directive 2003/96/EC of 27 October 2003)
- Details
On June 6, 2018 the Court of Justice of the European Union (CJEU) judged in Case C-49/17, Koppers Denmark ApS versus Skatteministeriet (ECLI:EU:C:2018:395).
This request for a preliminary ruling concerns the interpretation of Article 21(3) of Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of energy products and electricity (OJ 2003 L 283, p. 51).
The request has been made in proceedings between Koppers Denmark ApS (‘Koppers’) and the Skatteministeriet (Ministry of Taxation, Denmark) concerning the rejection of the request made to the latter by Koppers for a refund of the energy tax paid in respect of its consumption of solvent as fuel between 1 October 2005 and 31 December 2007 (‘the relevant period’).
