Menu
  • Locations
  • About Us
  • Services
  • Experts
  • News
  • Knowledge
  • Culture & Career
  • Locations
  • Search
  • Press
  • Events & Webinars
  • Contact
  • CI Guide
  • Albania
  • Angola
  • Argentina
  • Armenia
  • Australia
  • Austria
  • Bangladesh
  • Belarus
  • Belgium
  • Benin
  • Bolivia
  • Bosnia & Herzegovina
  • Brazil
  • Bulgaria
  • Burkina Faso
  • Burundi
  • Cambodia
  • Cameroon
  • Canada
  • Chile
  • China
  • Colombia
  • Costa Rica
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Dominican Republic
  • Ecuador
  • Egypt
  • El Salvador
  • Estonia
  • Finland
  • France
  • Georgia
  • Germany
  • Ghana
  • Gibraltar
  • Greece
  • Guatemala
  • Guinea
  • Honduras
  • Hong Kong
  • Hungary
  • Iceland
  • India
  • Indonesia
  • Iran
  • Iraq
  • Ireland
  • Israel
  • Italy
  • Ivory Coast
  • Japan
  • Kazakhstan
  • Kenya
  • Korea
  • Kyrgyzstan
  • Laos
  • Latvia
  • Lithuania
  • Luxembourg
  • Macao
  • Macedonia
  • Madagascar
  • Malaysia
  • Mali
  • Malta
  • Mauritius
  • Mexico
  • Moldova
  • Mongolia
  • Montenegro
  • Morocco
  • Mozambique
  • Myanmar
  • Nepal
  • Netherlands
  • New Zealand
  • Niger
  • Nigeria
  • Norway
  • Pakistan
  • Panama
  • Paraguay
  • Peru
  • Philippines
  • Poland
  • Portugal
  • Puerto Rico
  • Romania
  • Russia
  • Rwanda
  • Saudi Arabia
  • Senegal
  • Serbia
  • Seychelles
  • Singapore
  • Slovakia
  • Slovenia
  • South Africa
  • Spain
  • Sri Lanka
  • Sweden
  • Switzerland
  • Taiwan
  • Tanzania
  • Thailand
  • Togo
  • Trinidad and Tobago
  • Tunisia
  • Turkey
  • Turkmenistan
  • Uganda
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Uruguay
  • USA
  • Uzbekistan
  • Venezuela
  • Vietnam
  • Zambia
  • About Us
  • Our CEO
  • Our Board
  • Our Global Executive Team
  • Quality, Process & Risk Management
  • Corporate Tax
  • Customs
  • Financial Services
  • Global Mobility
  • Indirect Tax
  • International Corporate Tax
  • Mergers & Acquisitions (M&A)
  • Private Clients & Family Office Services
  • Real Estate Services
  • Tax Controversy
  • Tax Technology
  • Transfer Pricing & Valuation Services
  • Latest News
  • Pillar Two - Global Minimum Tax
  • Brochures
  • Newsletters
  • Surveys & Studies
  • The Digital Tax Law Center (DTLC)
  • The European Tax Law Center (ETLC)
  • Climate Protection, Green Tax & Energy
  • Tax Loss Carryback
  • Real Estate Guide
  • Assignments to Europe 2021
  • Tax and Investment Facts CEE
  • Culture and Leadership
  • Diversity
  • WTS Global Academy
  • Career
  • Your Development
  • Jobs
  • Press
  • Events & Webinars
  • Contact
  • CI Guide
WTS worldwide
  • Albania
  • Angola
  • Argentina
  • Armenia
  • Australia
  • Austria
  • Bangladesh
  • Belarus
  • Belgium
  • Benin
  • Bolivia
  • Bosnia & Herzegovina
  • Brazil
  • Bulgaria
  • Burkina Faso
  • Burundi
  • Cambodia
  • Cameroon
  • Canada
  • Chile
  • China
  • Colombia
  • Costa Rica
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Dominican Republic
  • Ecuador
  • Egypt
  • El Salvador
  • Estonia
  • Finland
  • France
  • Georgia
  • Germany
  • Ghana
  • Gibraltar
  • Greece
  • Guatemala
  • Guinea
  • Honduras
  • Hong Kong
  • Hungary
  • Iceland
  • India
  • Indonesia
  • Iran
  • Iraq
  • Ireland
  • Israel
  • Italy
  • Ivory Coast
  • Japan
  • Kazakhstan
  • Kenya
  • Korea
  • Kyrgyzstan
  • Laos
  • Latvia
  • Lithuania
  • Luxembourg
  • Macao
  • Macedonia
  • Madagascar
  • Malaysia
  • Mali
  • Malta
  • Mauritius
  • Mexico
  • Moldova
  • Mongolia
  • Montenegro
  • Morocco
  • Mozambique
  • Myanmar
  • Nepal
  • Netherlands
  • New Zealand
  • Niger
  • Nigeria
  • Norway
  • Pakistan
  • Panama
  • Paraguay
  • Peru
  • Philippines
  • Poland
  • Portugal
  • Puerto Rico
  • Romania
  • Russia
  • Rwanda
  • Saudi Arabia
  • Senegal
  • Serbia
  • Singapore
  • Slovakia
  • Slovenia
  • South Africa
  • Spain
  • Sri Lanka
  • Sweden
  • Switzerland
  • Taiwan
  • Tanzania
  • Thailand
  • Togo
  • Trinidad and Tobago
  • Tunisia
  • Turkey
  • Turkmenistan
  • Uganda
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Uruguay
  • USA
  • Uzbekistan
  • Venezuela
  • Vietnam
  • Zambia
  • About Us
    About Us

    Here you will find more information on our organization’s structure, experts and global reach.

    Read more
    About Us Our CEO Our Board Our Global Executive Team Quality, Process & Risk Management
  • Services
    Services
    Read more
    Corporate Tax Customs Financial Services Global Mobility Indirect Tax
    International Corporate Tax Mergers & Acquisitions (M&A) Private Clients & Family Office Services Real Estate Services Tax Controversy
    Tax Technology Transfer Pricing & Valuation Services
  • Experts
    Experts

    With a representation in over 100 countries, our team offers local expertise on a global scale. Learn more about our experts.

    Read more
  • News
    News

    Find here the latest tax news for our locations worldwide.

    Read more
    Latest News
  • Knowledge
    Knowledge

    Our quick overview with downloads: newsletters, publications, surveys. 

    Read more
    Pillar Two - Global Minimum Tax Brochures Newsletters Surveys & Studies The Digital Tax Law Center (DTLC)
    The European Tax Law Center (ETLC) Climate Protection, Green Tax & Energy Tax Loss Carryback Real Estate Guide Assignments to Europe 2021
    Tax and Investment Facts CEE
  • Culture & Career
    Culture & Career

    The WTS Global Academy - Bringing value to the whole

    Read more
    Culture and Leadership Diversity WTS Global Academy Career Your Development
    Jobs
  • Locations
    Locations

    Our locations worldwide

    Read more
  • Search
03.12.2018

Possible implementation of the ECJ Ruling Skandia into German VAT Law from January 1, 2019

The draft was published in order for interested parties to comment and may be altered before its final publication at the beginning of next year

In July 2018, the German Ministry of Finance published a draft position statement regarding the implementation of the Skandia Ruling of the ECJ (C-7/13, dated September 17, 2014) into German VAT Law. In its Skandia decision, the ECJ ruled that the supply of services from a head office located in a third country to its branch located in a Member State results in a taxable transaction in that Member state if the branch is part of a VAT group. Currently, under German VAT law, any cross-border transactions between headquarters of companies and their branch offices are considered internal turnover, not liable to VAT, since the branch is considered a dependent part of the third-country company, regardless of the membership of the branch in a VAT group. According to the draft position statement, the general principles of the Skandia ruling may only be applied if the head office of a group structure is located in a third country, the supplies are rendered to a branch located in a Member state and the branch is part of a VAT group according to German VAT Law. In these cases, the affiliation of the branch to a VAT group shall take priority over the affiliation of the branch to the parent company in the third country. However, there is a restriction in case the German branch is the only VAT group member established in Germany.

Scenario 1

A head office “S” in Switzerland has set up a branch “B” in Germany. Head office “S” also has a subsidiary “G” in Germany, which is part of a German VAT group together with “B”. “S” renders services to “B”. According to the draft statement, these supplies from “S” to “B” are taxable in Germany and can no longer be regarded as non-taxable internal turnovers.

Scenario 2

A Swiss-based head of a VAT Group “S” has a subsidiary “F” in France and several branches in Germany. “S” renders services to its German branches. The German branches form a single company according to sect. 2 (2) no. 2 s. 3 German VAT code, which is limited to Germany. As the German parts of the group structure consist of branches of “S” only, the services rendered by “S” are still qualified as non-taxable internal turnover in Germany; the principle of the Skandia ruling may not be applied. The draft was published in order for interested parties to comment and may be altered before its final publication at the beginning of next year. According to the current wording of the draft statement, the example given (see above, Scenario 1) is the only exception to the general rule of the non-taxability of services rendered to branches located in EU Member states by third country headquarters. The draft statement is supposed to be applied for all assessment periods that are not timebarred and consequently might also be applied for the current tax year. It shall not be contested if the above-stated amendment of the fiscal authority’s opinion is not applied for transactions that are carried out before January 1, 2019. Therefore, clients should now review their intra-company service structure and implement a reporting system, if necessary.

Newsletter Global VAT

The Global VAT Newsletter focuses on changes in compliance duties in various EU and non-EU countries

Subscribe now
Article published in WTS Global VAT Newsletter Q4/2018
Recent or expected changes in VAT and GST regulations and compliance duties in various EU and third countries
View publication
Articles you might be interested in

Our interdisciplinary team will be happy to help you acquire a detailed understanding of the rules, analyse the impact and develop a customised approach to ensure your company's future compliance to Pillar Two.

Pillar Two - Global Minimum Tax
read more

WTS Global is pleased to invite you to participate in an exciting virtual roundtable on the topic of the role of energy and electricity taxes in the current energy crisis.

Roundtable: The role of energy and electricity taxes in the current energy crisis - Views from France, Germany, Portugal and Sweden
read more

Tiago Marreiros Moreira and Filipe de Vasconcelos Fernandes of Vieira de Almeida discuss the types of policy objectives aligned with green taxation in Portugal, and predict upcoming changes.

The evolution of green taxation in Portugal
read more

Get in contact

If you have any questions about WTS Global or our global services, please get in touch.
We will respond to you as soon as possible.

Contact
About Us
  • About Us
  • Our CEO
  • Our Board
  • Our Global Executive Team
  • Quality, Process & Risk Management
Services
  • Corporate Tax
  • Customs
  • Financial Services
  • Global Mobility
  • Indirect Tax
  • International Corporate Tax
  • Mergers & Acquisitions (M&A)
  • Private Clients & Family Office Services
  • Real Estate Services
  • Tax Controversy
  • Tax Technology
  • Transfer Pricing & Valuation Services
News
Knowledge
  • Brochures
  • Newsletters
  • Surveys & Studies
  • COVID-19 Global updates
  • The Digital Tax Law Center (DTLC)
  • VAT Update for the Digital Economy
  • The European Tax Law Center (ETLC)
  • Tax Loss Carryback
  • Real Estate Guide
Culture & Career
  • Culture and Leadership
  • Diversity
  • WTS Global Academy
  • Career
  • Your Development
  • Jobs
Exclusive Cooperation With
© 2022 WTS Company Information Data Protection Disclaimer