In this update, we provide key insights from the latest VAT Expert Group meeting, as well as information on the Italian Supreme Court denial of VAT, and Germany's Indirect taxes in the new coalition agreement deduction.
39th VAT Expert Group Meeting Summary
Key insights from the latest VAT Expert Group meeting, focusing on VAT simplification, digitalisation, and environmental aspects.
The Coalition Agreement between the new governing parties CDU/CSU and SPD was recently presented. In the area of tax law, the main focus is on direct taxes. However, there will also be some changes for indirect tax law, some of which may have a significant impact.
The Italian Supreme Court held that the right to deduct input VAT may be denied – even in the absence of proven VAT fraud or abuse – where the recipient fails to exercise adequate diligence regarding the supplier’s VAT compliance. However, this interpretation appears to depart from the CJEU’s case law, which requires objective evidence of fraud or abuse to justify the denial of the right to deduct.
The Dutch Supreme Court seeks clarification from the CJEU as to which member(s) of a VAT Fiscal Unity must comply with the conditions for applying the VAT exemptions as referred to in article 132(1)(b) and (g) of the EU VAT Directive.
VAT exemption upheld for ‘black boxes’ in insurance transactions.
