AUSTRIA

Split transport

The VAT exemption for an iC supply acc. to Art. 7 (1) of the Austrian VAT Act is granted under the condition that inter alia the goods are dispatched or transported from one Member State to another Member State either by or on behalf of the vendor or the acquirer. According to the Supreme Administrative Court this precondition is still fulfilled even if the transport is split i.e. both the supplier and the customer are involved in the transport assumed that at the beginning of the transport the customer is determined and a material and temporal connection as well as a continuous transport exists (VwGH 27th April 2017, Ro 2015/15/0026).

Educational Services

According to the Supreme Administrative Court a private language and tuition school for adult education is granted the VAT exemption pursuant to Sec. 6 (1) (11) of the Austrian VAT Act, in case the “purpose” of the provided services is comparable with the purpose of services usually carried out by a public school, irrespective of the wording of the Austrian VAT law that requires “similar activities” as of public schools (VwGH 31st March 2017, Ro 2015/13/0014).

Managing director as taxable person

According to the Supreme Administrative Court the qualification of a managing shareholder as taxable person in accordance with Sec. 2 of the Austrian VAT Act does not depend on the share value hold. By referring to the decision of ECJ in Van der Steen (C-355/06), the Supreme Administrative Court pointed out that it is decisive whether the managing shareholder is bound by a contract where in the light of all relevant circumstances (e.g. remuneration, working conditions and responsibility) a relationship of employer and employee is created or not (VwGH 26th January 2017, Ro 2016/15/0003).

Invoice adjustment with retroactive effect

A taxable person has the right to deduct input VAT with retroactive effect, if an incorrect invoice – issued and received by the taxable person in a prior period – was corrected afterwards (BFG 31.3.2017, RV/2100032/2016). This decision is made with reference to the ECJ´s ruling Senatex (C-518/14).

BULGARIA

Amendments to the VAT Act

As of 21st March 2017

The supply of prepaid telephone cards is considered as a supply of telecommunications services acc. to Art. 3 (9) of the Bulgarian VAT Act (SG No. 24/ 21.3.2017).

New evidence requirements have been introduced regarding the intended purpose and use of vessels in open sea in order to apply the zero VAT rate (e.g. registration in the common register of vessels flying the Bulgarian flag) (SG No. 24/ 21.3.2017).

The taxable event of supplies of goods and services performed in stages occurs on the date of the finalization of each stage and should be evidenced by a ‘hand-over’ protocol signed by the recipient and the supplier (SG No. 24/ 21.3.2017).

CROATIA

Amendments to the VAT Ordinance

As of 1st May 2017

Rental of movable property and vessels as well as accommodation services on vessels provided to private individuals outside of the EU are considered as be provided in Croatia, if those services are actually consumed (enjoyed) in Croatia

The reduced VAT rate of 13 % is applicable for in detail listed edible oils, greases and animal foods (public Gazelle Nr. 41/2017).

Information of Tax Authorities

The tax base for supplies of second-hand means of transport carried out by taxable dealers using the margin scheme for used vehicles does not include the amount of the special Croatian tax on motor vehicles charged by the dealer to the acquirers.
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Taxable persons established in Croatia have to issue invoices in Croatian language. In case of cross-border transactions bilingual invoices may be issued, mandatory in Croatian language and another freely chosen language.
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CZECH REPUBLIC

Right to deduct input VAT

According to the Supreme Administrative Court (6 Afs 148/2016-30) in order to have the right to deduct input VAT, a taxable person within a chain transaction has to prove that he could not and does not know about the fraudulent behavior of the other parties involved in the transaction.

Amendments to the VAT Act

As of 1st July 2017

The extension of the definition of unreliable VAT payers and the extension of the temporary reverse charge mechanism to specific supplies (cf. VAT Newsletter first quarter 2017) came into force (VAT Amendment parliamentary No. 873).

GERMANY

Invoices for small amounts

With retroactive effect as from 1st January 2017, the threshold for invoices for small amount increased from EUR 150 to EUR 250 (Bürokratieentlastungsgesetz II).

Consignment stock rules

According to the Federal Tax Court a supply from an European supplier to a German customer via a consignment stock in Germany might be deemed to be a direct iC supply, if goods are only stored temporarily and the recipient is already known (e.g. by a binding purchase agreement) at the beginning of the transportation to the consignment stock (BFH 20.10.2016, V R 31/15).

HUNGARY

Amendments to the VAT Act

As of 1st January 2018

The VAT rate will be reduced from 18 % to 5 % for internet access services and from 27 % to 5 % for fish products.

As of 1st July 2018

Invoices with a minimum value of HUF 100,000 have to be reported to the tax authorities in the domestic itemized report (cf. VAT Newsletter third quarter 2016).

Furthermore, invoicing software shall provide real time data to the tax authorities (Act No LXXVII of 2017 published on 20th June 2017).

List of non-compliant taxpayers

As of 20th June 2017

A list of non-compliant taxpayers (black list) is published on the tax authority’s website, containing taxable persons who failed to file consecutive VAT returns three times. The intention is to warn business partners of listed taxable persons about their misconduct and enforce them to check the non-compliant taxpayer’s integrity (Act No LXXVII of 2017 published on 20th June 2017).

POLAND

Guidelines for reverse charge mechanism to construction services

Guidelines concerning the reverse charge mechanism for construction services that came into force on 1st January 2017 were published; describing typical situations for construction processes and explaining how VAT should be charged (official tax guidelines, 17th March 2017).

ROMANIA

Implementation of a new database for VAT remund

As of 1st May 2017

A special (not public) database will be implemented by the tax authorities in which taxable persons, who are identified and registered as presenting a ‘high risk’ of fraud will be listed. The listed taxable persons may only benefit from a VAT refund after a tax audit (Order 1232/2017 from Romanian National Agency for Tax Administration).

SLOVENIA

Denial of input VAT deduction for purchase of land plot

According to the Administrative Court input VAT deduction on a land purchase may be denied, if the purchaser (who effectively used the land plot according to the facts of the case) is not entitled to get registered in the land register (e.g. due to a missing intabulation clause in the contract) (No. U I 1719/2015 from 6th September 2016).