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Global VAT news

Thursday, December 2, 2010

by Nick Ryan

Adoption of new anti-fraud regulation: The EC has adopted a regulation to enable Member States to assist them in combating VAT fraud. This introduces Eurofisc which is the creation of a network of national officials whose focus is to detect and combat new cases of cross-border VAT fraud.
The purpose of Eurofisc is to provide a facility whereby cooperation between tax administrations can be improved and provides for the spontaneous exchange of information between Member States tax authorities. This should enable the more effective combating of cross-border fraud.
RBS Deutschland Holdings and cross-border car leasing arrangements: The Advocate-General has confirmed agreement with the taxpayer that their arrangements to lease cars cross-border and not account for VAT on the lease was not an “abuse”. The Advocate-General also concluded that input VAT on the purchase of the vehicles was deductible. This is an interesting case that questions the establishment and place of supply rules specifically where there is a mismatch in these rules in different Member States.