Can VAT be imposed on both the recipient and the supplier?
In GST-Sarviz AG Germania v Direktor na Direktsia ‘Obzhalvane i danachno-osiguritelna praktika’ (C-111/14) (23 April 2015) the CJEU found that the Bulgarian tax authorities could not tax the same transaction twice.
GST-Sarviz established in Germany provided consultancy services to GST Skafolding established in Bulgaria. On the basis that GST-Sarviz did not have a fixed establishment in Bulgaria GST Skafolding paid the VAT due on the supply of those services under the reverse charge procedure. However the Bulgarian tax authorities found that GST-Sarviz had a fixed establishment in Bulgaria and was liable for the VAT. They also refused to refund the VAT paid by GST Skafolding because it did not have the required document.
The CJEU observed that under the VAT Directive only the supplier of services is in principle...
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Can VAT be imposed on both the recipient and the supplier?
In GST-Sarviz AG Germania v Direktor na Direktsia ‘Obzhalvane i danachno-osiguritelna praktika’ (C-111/14) (23 April 2015) the CJEU found that the Bulgarian tax authorities could not tax the same transaction twice.
GST-Sarviz established in Germany provided consultancy services to GST Skafolding established in Bulgaria. On the basis that GST-Sarviz did not have a fixed establishment in Bulgaria GST Skafolding paid the VAT due on the supply of those services under the reverse charge procedure. However the Bulgarian tax authorities found that GST-Sarviz had a fixed establishment in Bulgaria and was liable for the VAT. They also refused to refund the VAT paid by GST Skafolding because it did not have the required document.
The CJEU observed that under the VAT Directive only the supplier of services is in principle...
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