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‘No-deal scheme’

The government has decided that UK citizens and their family members who lawfully reside in the Netherlands before Brexit will also retain their right of residence in the event of a ‘no deal’. Brexit means considerable uncertainty for the many UK citizens living in the Netherlands. The announced transitional rules will finally make clear for this group where they stand. 

In the final Dutch VAT return of 2018 a VAT correction should be made on the basis of the VAT Deduction Exclusion Decree (“DED”) and the private use of company cars. In that context we have updated our memorandum regarding the VAT correction on promotional gifts and other benefits, such as staff benefits. Furthermore, the VAT correction based on the private use of company cars is described.

As of January 1, 2019 new VAT rules apply to vouchers, stamps and tokens. The new rules are a result of the EU Voucher Directive, which is designed to harmonize the VAT treatment of vouchers within the EU. Until recently, there were no specific rules for the VAT treatment of vouchers in the Netherlands and other EU Member States. 

On December 21, 2018, the Minister for Legal Protection published the draft bill on the Civil Society Organizations Transparency Act. The proposal provides for, on the one hand, insight into cash flows to civil society organizations by publishing information about donors who donate or make gifts of EUR 15,000 or more per year and, on the other hand, the obligation for foundations to disclose certain financial information.

Tuesday, 15th of January will be a crucial day in what seems to become a never ending story regarding the Brexit. Leon Kanters, Brexit expert and partner of KPMG Meijburg & Co: “The Brexit deal will be brought for a vote to the House of Commons in the UK. When we believe the media it will become a clear defeat for the British prime minister May.“

In 2013, the EU and Japan launched negotiations on enhanced economic and strategic cooperation. These negotiations resulted in an Economic Partnership Agreement (EPA) and a Strategic Partnership Agreement (SPA), both signed at the EU-Japan Summit on July 17, 2018. 

On January 24, 2019, the Court of Justice of the European Union (‘CJEU’) rendered its judgment in the Morgan Stanley & Co International plc (‘Morgan Stanley’) case (case no. C-165/17). This case concerns the VAT recovery of costs incurred by a fixed establishment that are also used for the turnover of a foreign head office.

On January 17, 2019, the Court of Justice of the European Union (‘CJEU’) rendered judgment in a case that dealt with the location of risk for insurance premium tax purposes (case no. C-74/18). The case concerned insurance policies for M&A transactions. 

At the end of 2018 the European Council formally approved the proposals for four ‘VAT quick fixes’ to simplify international trade. These will take effect on January 1, 2020 and will have a considerable impact on businesses trading in international goods.

On February 12, 2019 the Dutch Lower House of Parliament passed the Bill for the ratification of the Multilateral Convention (“MLI”) to Implement Tax Treaty-Related Measures to Prevent Base Erosion and Profit Shifting (BEPS) and improve dispute resolution mechanisms. Noteworthy is that the Lower House also agreed to change the MLI position of the Netherlands with respect to preventing the artificial avoidance of permanent establishment status.