International Tax Plaza’s quick news from August 13, 2018
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We hope you all have been (or perhaps still are) enjoying a great Summer break. We have just returned after a few weeks of holidays and thus it was time to make an efficient overview of some of the most interesting tax news of the last few weeks.
Read more: International Tax Plaza’s quick news from August 13, 2018
The opinion of the AG in Case C-495/17, Cartrans Spedition (VAT – Proof that goods were exported)
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On July 12, 2018 on the website of the Court of Justice of the European Union (CJEU) the opinion of Advocate General Sharpston in the Case C-495/17, Cartrans Spedition Srl versus Direcţia Generală Regională a Finanţelor Publice Ploieşti - Administraţia Judeţeană a Finanţelor Publice Prahova Direcţia Regională a Finanţelor Publice Bucureşti - Administraţia Fiscală pentru Contribuabili Mijlocii (ECLI:EU:C:2018:573) was published.
By this request for a preliminary ruling the Tribunalul Prahova (Tribunal, Prahova, Romania) seeks guidance on the interpretation of Council Directive 2006/112/EC. The referring court wishes to ascertain whether national rules which require a taxpayer to provide specific documents in order to obtain the benefit of exemption from VAT on the supply of services (including transport), where these are directly connected with the export of goods outside the territory of the European Union, are compatible with the VAT Directive. Where such goods are conveyed under cover of an international road transport carnet in accordance with the system established by the Customs Convention on the international transport of goods under cover of TIR carnets, the referring court asks whether such documents constitute evidence proving that the goods concerned were indeed exported.
CJEU judges in Case C-154/17, E LATS (VAT – Notion of ‘second-hand goods’ – Notion of ‘precious metals or precious stones’)
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On July 11, 2018 the Court of Justice of the European Union (CJEU) judged in Case C-154/17, SIA ‘E LATS’ versus Valsts ieņēmumu dienests (ECLI:EU:C:2018:560).
This request for a preliminary ruling concerns the interpretation of Article 311(1)(1) 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 SIA ‘E LATS’ (‘E LATS’) and the Valsts ieņēmumu dienests (tax authority, Latvia) concerning payment of value added tax (VAT) and, particularly, the applicability of the margin scheme to the sale of goods containing, inter alia, gold, silver and precious stones.
CJEU judges in Case C-320/17, Marle Participations (VAT)
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On July 5, 2018 the Court of Justice of the European Union (CJEU) judged in Case C-320/17, Marle Participations SARL versus Ministre de l’Économie et des Finances (ECLI:EU:C:2018:537).
This request for a preliminary ruling concerns the interpretation of Articles 2, 9 and 168 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 Marle Participations SARL and the ministre de l’Economie et des Finances (Minister for the Economy and Finance, France) concerning the deductibility of the value added tax (VAT) paid by the applicant in the main proceedings in respect of expenditure relating to the acquisition of securities.
Read more: CJEU judges in Case C-320/17, Marle Participations (VAT)
CJEU judges in Case C-544/16, Marcandi (VAT – Issue of credits that can be used to place bids in online penny auctions and whose value may be credited towards the price of goods purchased directly from the company running the auctions)
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On July 5, 2018 the Court of Justice of the European Union (CJEU) judged in Case C-544/16, Marcandi Ltd, trading as ‘Madbid’ versus Commissioners for Her Majesty’s Revenue and Customs (ECLI:EU:C:2018:540).
This request for a preliminary ruling concerns the interpretation of Article 2(1), Articles 14, 24, 62, 63, 65 and 73, and Article 79(b) 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 Marcandi Ltd, trading as ‘Madbid’, and the Commissioners for Her Majesty’s Revenue and Customs (‘HMRC’) (United Kingdom) concerning the system of value added tax (VAT) applicable to the sale of ‘credits’ that can be used to participate in online auctions.
CJEU judges in Case C-28/17, NN (Freedom of establishment – Entitlement to deduct losses from a permanent establishment at Tax Group level)
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On July 4, 2018 the Court of Justice of the European Union (CJEU) judged in Case C-28/17, NN A/S versus Skatteministeriet (ECLI:EU:C:2018:526).
This request for a preliminary ruling concerns the interpretation of Article 49 TFEU.
The request has been made in the context of proceedings between NN A/S, a company established under Danish law, and the Skatteministeriet (Tax Ministry, Denmark), concerning the latter’s refusal to allow that company to deduct the losses sustained by the Danish branch of its Swedish subsidiary from its taxable income.
The OECD releases a Public Consultation Draft on the transfer pricing aspects of financial transactions (BEPS Actions 8 - 10)
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On July 3, 2018 the OECD released a Public Consultation Draft on a very important subject, namely the transfer pricing aspects of financial transactions (BEPS Actions 8 - 10). The consultation period runs until September 7, 2018.
State Aid - Starbucks case - Dutch Ministry of Finance publishes a summary of the pleas it made in front of the CJEU
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On July 2, 2018 there was a hearing at the Court of Justice of the European Union (CJEU) in the joined Cases T-760/15 (Netherlands v Commission) and T-636/16 (Starbucks and Starbucks Manufacturing Emea v Commission). On that same day the Dutch Ministry of Finance published a summary of the pleas it made during this hearing.
The OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters entered into force on July 1, 2018 with respect to Turkey
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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, the OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters entered into force on July 1, 2018 with respect to Turkey.
Former Yugoslav Republic of Macedonia signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters
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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 27, 2018 Former Yugoslav Republic of Macedonia signed the Amended Convention on Mutual Administrative Assistance in Tax Matters.
Estonia signs the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI)
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On June 29, 2018 the OECD issued a press release announcing that on the same date Estonia signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). Therewith Estonia became the 82nd jurisdiction to join the MLI.
New Zealand, Sweden and the United Kingdom deposit their instruments of ratification for the MLI
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According to the overview of signatories and parties to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI), as available on the website of the OECD, New Zealand (on June 27, 2018), Sweden (on June 22, 2018) and the United Kingdom (on June 29, 2018) recently deposited their instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI).
3 more jurisdictions sign the MLI
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On June 27, 2018 the OECD issued a press release announcing that on the same date Ministers and high-level officials from Kazakhstan, Peru and the United Arab Emirates signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). Therewith the number of signatories to the MLI comes to 79 and the number of covered jurisdictions to 81.
CJEU judges in Case C-203/16 P, Andres (faillite Heitkamp BauHolding) v Commission (State Aid – German tax legislation concerning the possibility of carrying losses forward to future tax years)
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On June 28, 2018 the Court of Justice of the European Union (CJEU) judged in Case C-203/16 P, Dirk Andres, acting as liquidator in the insolvency of Heitkamp BauHolding GmbH, residing in Düsseldorf (Germany), represented by W. Niemann, S. Geringhoff and P. Dodos, Rechtsanwälte, applicant, the other parties to the proceedings being: European Commission, represented by R. Lyal, T. Maxian Rusche and K. Blanck-Putz, acting as Agents, defendant at first instance, Federal Republic of Germany, represented by T. Henze and R. Kanitz, acting as Agents, intervener at first instance (ECLI:EU:C:2018:505).
CJEU judges in Case C-364/17, Varna Holideis (VAT – Interpretation of the Articles 90(1) and 185(1) of Directive 2006/112)
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On June 27, 2018 the Court of Justice of the European Union (CJEU) judged in Case C-364/17, ‘Varna Holideis’ EOOD versus Direktor na Direktsia ‘Obzhalvane i danachno-osiguritelna praktika’– Varna pri Tsentralno upravlenie na Natsionalnata agentsia za prihodite (ECLI:EU:C:2018:500).
This request for a preliminary ruling concerns the interpretation of Articles 90 and 185 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 reference was made in the course of proceedings between ‘Varna Holideis’ EOOD and the Direktor na Direktsia ‘Obzhalvane i danachno-osiguritelna praktika’ — Varna pri Tsentralno upravlenie na Natsionalnata agentsia za prihodite (Director of the Appeals and Enforcement Management Directorate, Varna, at the Central Administration of the National Revenue Agency) (‘the Direktor’) concerning the adjustment of a deduction of input value added tax (‘VAT’) which ‘Varna Holideis’ EOOD paid when purchasing a building for use as a hotel.
CJEU judges in the joined Cases C-459/17 (SGI versus Ministre de l’Action et des Comptes Publics) and C-460/17 (Valériane SNC versus Ministre de l’Action et des Comptes Publiques) (VAT – Interpretation of Article 17 of the Sixth VAT Directive)
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On June 27, 2018 the Court of Justice of the European Union (CJEU) judged in the joined Cases SGI (C‑459/17), Valériane SNC (C‑460/17) versus Ministre de l’Action et des Comptes publics (ECLI:EU:C:2018:501).
These requests for a preliminary ruling concern the interpretation of Article 17 of the Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes — Common system of value added tax: uniform basis of assessment (OJ 1977 L 145, p. 1), as amended by Council Directive 91/680/EEC of 16 December 1991 (OJ 1991 L 376, p. 1) (‘the Sixth Directive’).
The requests have been made in two sets of proceedings between, SGI (C‑459/17) and Valériane SNC (C‑460/17), respectively, and, the Ministre de l’Action et des Comptes publics (Minister for Public Action and Accounts, France) concerning the right to deduct of value added tax (VAT) for transactions relating to the purchase of equipment.
Why did ECOFIN not come to an agreement on the Commission’s proposal for quick fixes to improve the day-to-day functioning of the current VAT system?
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On June 26, 2018 the Dutch Minister of Finance sent a summary of discussions of the EUROGROUP meeting of June 21, 2018 and the Economic and Financial Affairs (ECOFIN) Council of June 22, 2018 to the Dutch House of Representatives. This summary of discussions give an interesting insight in some of the discussions that were held. In this article we will focus on the summary of discussions of the VAT topics that were discussed during the ECOFIN Council of June 22, 2018.
Vanuatu signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters
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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 21, 2018 Vanuatu signed the Amended Convention on Mutual Administrative Assistance in Tax Matters.
