Nov 6

Meeting of the Economic and Financial Affairs (ECOFIN) Council

Ministers will exchange views on the digital services tax and discuss the progress achieved in the negotiations so far.

Proposal on the common system of a digital services tax on revenues resulting from the provision of certain digital services

Nov 8

CJEU expected to deliver judgment in Case C-502/17, C&D Foods Acquisition (VAT – Holding company – Deduction of input tax – Expenditure on services linked to the proposed sale of shares in a subsidiary)

Questions referred for a preliminary ruling:

1. Should Article 168 of Directive 2006/112/EC be interpreted as meaning that a holding company, in circumstances such as those in the main proceedings, is entitled to a full deduction of VAT on input services related to due diligence investigations before an envisaged, but not completed, sale of shares in a subsidiary to which the holding company supplies management and IT services that are subject to VAT?

2. Is the answer to the above question affected by the fact that the price for the VAT taxable management and IT services, which the holding company supplies for the purposes of its economic activity, is a fixed amount corresponding to the holding company’s expenditure on employees’ salaries, with the addition of a ‘mark-up’ of 10%?

3. Irrespective of the answer to the foregoing questions, can a right of deduction exist if the consultancy costs at issue in the main proceedings are regarded as general costs, and if so, on what conditions?

The opinion in this case as delivered on September 9, 2018 by Advocate General Kokott can be found here

Nov 8

CJEU expected to deliver judgment in Case C-495/17, Cartrans Spedition (VAT – Proof that goods were exported)

Questions referred for a preliminary ruling:

(1)   For the purposes of the VAT exemption for transport operations and services relating to the export of goods, in accordance with Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, does a TIR carnet certified by the customs authorities of the country of destination constitute a document which proves that the goods transported were indeed exported, taking into account the procedure for such a customs transit document laid down in the Transit Manual (TIR procedure) No TAXUD/1873/2007 by the Customs Code Committee — Transit section, Directorate-General Taxation and Customs Union of the European Commission??

(2)   Does Article 153 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax preclude a tax practice which requires a taxpayer to prove that goods transported were exported exclusively by means of a customs export declaration, with the result that the right to deduct VAT for transport services in respect of goods exported will be refused in the absence of that declaration, even if a TIR carnet certified by the customs authorities of the country of destination exists?

More information on the opinion in this case as delivered on July 12, 2018 by Advocate General Sharpston can be found here