In order to mitigate potential cash flow issues for businesses, the Federal Tax Authorities announced that taxable persons would be exempt from making a December advance payment for 2020 (Circular letter 2020/C/133). A recent circular letter from the VAT authorities now provides some more information on this measure.

The end of the year is getting closer. To make sure you can start the new year without worrying, we will guide you through these last weeks of 2020 by putting your attention on some last to do’s.

In its judgment of 12 November 2020 in the ‘Sonaecom’ case (C 42/19), the European Court of Justice (ECJ) ruled that a company can deduct VAT on abort costs, provided the company intended to render VAT taxed services to the envisaged target. The ECJ thereby confirmed the line it set out in previous rulings and provided further guidance on the conditions for deduction of VAT on abort costs, including circumstances under which VAT deduction was not allowed.