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Press release Box-ID: 470331

ECOVIS AG Steuerberatungsgesellschaft Ernst-Reuter-Platz 10 10587 Berlin, Germany http://www.ecovis.com
Contact Mr Ulf Hausmann +49 30 31000854

Slovak Republic: Decision on Place of VAT Taxation

The European Court of Justice (ECJ) has determined the person obliged to pay the value added tax (VAT) on intra-Community services.

(PresseBox) (Berlin, )
In a supervisory procedure on application of the reverse change mechanism in case of intra-Community services the German Federal Fiscal Court asked the ECJ to decide the following question: Is a taxable person considered a taxable person established abroad already when the person has established its business abroad, or must the other condition also be met, namely that such person is not residing in Germany? The ECJ decided that the conclusive factor determining the taxable person is the actual seat of the service business (proven by registration) and the existence of a permanent establishment through which the business transactions are carried out. Other elements such as residence of the tax payer or place where he usually lives are taken into account only in the absence of crucial information on the business seat. According to ECJ, in order to consider the taxable person “a taxable person not established in the territory of the country”, it is sufficient that the business seat is located abroad. Therefore in this case he or she may invoice for services provided to a business in another EC country without the VAT and state on the invoice that „the tax debtor is the recipient of the service“ (reverse charge).

Author
Ing. Dorota Kosperová, Manager, ECOVIS LA Partners, Bratislava

If you wish to know more about the court decision and the case under review, please download full document: www.ecovis.com/slovak411

ECOVIS AG Steuerberatungsgesellschaft

About Ecovis
Ecovis is a leading global consulting firm with its origins in Continental Europe. It has over 3,300 staff operating in over 40 countries. Its consulting focus and core competencies lie in the areas of tax consultation, auditing, legal advice and accounting and management consulting services. The particular strength of Ecovis is the combination of personal advice at a local level with the general expertise of an international and interdisciplinary network of professionals. Every Ecovis office can rely on qualified specialists in its back offices as well as on the specific industrial or national know-how of all the Ecovis experts worldwide. This diversified expertise provides clients with effective support, especially in the fields of international transactions and investments - from preparation in the client's native country to support in the target country. In its consulting work Ecovis concentrates mainly on mid-sized firms. Both nationally and internationally, its one-stop-shop concept ensures all-round support in legal, fiscal, managerial and administrative issues. The name Ecovis, a combination of the terms economy and vision, expresses both its international character and its focus on the future and growth.

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The publisher indicated in each case is solely responsible for the press releases above, the event or job offer displayed, and the image and sound material used (see company info when clicking on image/message title or company info right column). As a rule, the publisher is also the author of the press releases and the attached image, sound and information material. The use of information published here is generally free of charge for personal information and editorial processing. Please clarify any copyright issues with the stated publisher before further use. In case of publication, please send a specimen copy to service@pressebox.de.