Read Talking Points to keep up to date on recent Indirect Tax developments.
Talking Points is a weekly newsletter covering recent developments in Indirect Tax. We will highlight the most significant items in Tax Matters Digest so readers are aware of issues that may be relevant and can read on for more details where applicable. Issue 35/20 included: details of post transition Intrastat declarations, the Government’s press release ”Time is running out for businesses to prepare”, and confirmation of a decision on fixed establishments. Issue 36/20 included three First-tier Tribunal (FTT) decisions on whether local authority supplies of sports and leisure facilities are outside the scope of VAT, the use, enjoyment and roaming of telecom services in Austria, and the VAT treatment of a nutrition service. In addition we discuss a Revenue and Customs Brief on the VAT liability of payroll services.
This week’s edition leads with the awaited details of Intrastat requirements post transition. Whilst no longer a requirement for the UK under EU law, the UK has always emphasised the importance of data on movements of goods in and out of the UK. Whilst declarations will not be required for goods exported to the EU, due to simplifications in delaying certain import customs declarations, Intrastat declarations will be required for imports from the EU for 2021. Also, this week we report on the Government’s press release “Time is running out for businesses to prepare” which warns businesses to prepare for an Australian-style arrangement with the EU from January 2021. In case news, we confirm the judgment date in Sonaecom SGPS (C-42/19) on the input tax recovery in relation to an aborted acquisition and a new referral in Berlin Chemie A. Menarini (C-332/20) on fixed establishment.
Three FTT decisions were recently released on local authorities and whether their sports and leisure facilities are outside the scope of VAT. The different cases covered different parts of the UK. All found for the taxpayer in that they were acting under a special regime for the purpose of the first paragraph of Article 13 of the VAT Directive. In the Northern Ireland case the FTT did go on to find that such treatment did not lead to significant distortion of competition and therefore such supplies were outside the scope of VAT. The other two judgments would require a further hearing on distortion if requested. In other cases the Advocate General (AG) was of the Opinion in SK Telecom Co. Ltd (C-593/19), that the South Korean telecom operator’s roaming charges to its South Korean customers temporarily resident in Austria, were subject to Austrian VAT under the use and enjoyment option Austria has adopted. In Frenetikexito (C-581/19) the AG considered that the taxpayer’s nutrition service was a separate supply from its taxable fitness services but that, contrary to the taxpayer’s contention, the nutrition service could not fall within the medical care exemption, as it had no therapeutic aim.
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