Members of the Specialist Group share their knowledge, experience and provide relevant updates in all matters relating to VAT. During this call the main topic for debate is VAT treatment on cross-border property projects.

When the Core VAT Group were discussing this area it became clear that the countries represented (Denmark, Germany, Italy and UK) have very different views on certain VAT treatments in the world of property.

Therefore, we would like to use the resource of the VAT group to see where there may be issues that would require further investigation and/or collaboration.

The two main issues are:

Some (most?) countries use a VAT “simplification” for overseas suppliers where the recipient business is registered for VAT in the country where the land/property is located. The recipient business accounts for the VAT on the supply of the overseas supplier, so the overseas supplier does not have to register and account for VAT in that country.

Does your country operate this simplification? If yes, are there any exceptions to this? If no, do all such overseas suppliers have to register for VAT there?

Fixed establishment – the definition of what creates a fixed establishment is also inconsistent. For example, for VAT in the UK a business must have the necessary “human and technical resources” to operate a business (from winning clients, agreeing and signing contracts, dealing with disputes, being able to terminate business relationships). But other countries may different criteria. Again, asking for your help, what is the level of activity/organisation in your country that is enough to create a fixed establishment there?

This informal call is open to everyone. Even if you don't have a specific VAT question in mind come along anyway to network and get to know the team.

Nicki Lynn

Operations Manager

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