European Commission communication on taxation of the digital economy
Following the informal meeting of the Economic and Financial Affairs Council (Ecofin) of the European Union held in Tallinn on September 15 and 16, 2017, the European Commission published its Communication on a fair and efficient tax system in the European Union for the digital single market.
Is VAT on services deductible in the case of the proposed sale of a participation if the sale ultimately does not proceed?
We recently informed you about the request for a preliminary ruling in the Ryanair case (C-249-17). That case, pending before the Court of Justice of the European Union (hereinafter: CJEU), concerns the question whether VAT on professional services is deductible if the proposed takeover of a participation is ultimately unsuccessful.
Customs duties refund opportunity extended for recalls and warranties
On October 12, 2017 the European Court of Justice (“CJEU”) ruled in favor of Meijburg & Co’s warranty and recall case (C-661/15), meaning that the period for price adjustments has been extended from one year to three years. Furthermore, recalls necessary to avoid risks of failure must be treated equally as defective goods. This will lead to more opportunities for a customs duties refund in the case of recalls and warranties.
The Supreme Court: interim evaluation of 30% ruling permissible after introduction of 150-kilometer criterion
The 30% ruling is a fixed allowance paid to compensate for the costs of a temporary stay outside the country of origin (extraterritorial expenses). Since January 1, 2012 only employees who resided more than 150 kilometers from the Dutch border during at least two-thirds of the 24 months preceding the commencement of their employment or secondment in the Netherlands are eligible for the 30% ruling.
EU and Japan finalize Economic Partnership Agreement
On December 8, 2017, the EU and Japan announced the successful conclusion of the negotiations regarding the Economic Partnership Agreement (EPA). The EPA is to date the biggest bilateral trade agreement negotiated by the EU. The finalizing of the legal text is an important step forward to putting the agreement in place.
Court of Justice of the European Union also applies per element approach to the Netherlands
On February 22, 2018, the Court of Justice of the European Union (CJEU) rendered judgment in two interesting corporate income tax cases for which the Dutch Supreme Court had requested preliminary rulings (see our previous memorandum).
Deputy Minister of Finance releases new Transfer Pricing Decree
On May 11, 2018, the Dutch Deputy Minister of Finance published a new Transfer Pricing Decree, dated April 22, 2018 (no. 2018-6865). This decree replaces the Transfer Pricing Decree of November 14, 2013 (no. IFZ 2013/184M).
Important changes to sector classification effective immediately
On Friday, June 29, 2018, the Cabinet approved the Labor Market Improved Equilibrium Act (‘Wet arbeidsmarkt in balans’; WAB). Under this Act, sector-specific unemployment contributions will be replaced as of 2020 by contributions differentiated according to the type of employment contract.
Assessment of early retirement scheme on the basis of objective criteria
On Friday June 22, 2018, the Supreme Court rendered judgment as to whether a severance package should be regarded as an early retirement scheme ('regeling voor vervroegde uittreding', hereinafter: RVU). An RVU is a scheme whose sole or almost sole purpose is to provide for one or more benefits to bridge the period between the end of employment and retirement or an earlier pension date.