EU Member States formally adopt directive implementing Pillar Two
On 12 December 2022, the Council of the EU announced that Member States had reached the required unanimity for the adoption of the Directive implementing Pillar Two at EU level. Following this announcement, on 15 December the Council formally adopted the Directive’s compromise text of 25 November 2022 together with a statement stressing the EU’s commitment to also adopt Pillar 1.
Council adopts Regulation on foreign subsidies distorting the internal market
On 28 November 2022, EU Member States formally adopted the Council Regulation on foreign subsidies distorting the internal market (Regulation). This Regulation will enter into force on the twentieth day following that of its publication in the Official Journal of the EU (the exact date is not yet known).
CJ rules on whether DAC 6 infringes the right to respect communications between a lawyer and his/her client (Order of Flemish Bars and Belgian Association of Tax Lawyers v Flemish Government, C-694/20)
On 8 December 2022, the CJ delivered its judgment in the case of Order of Flemish Bars and Belgian Association of Tax Lawyers v Flemish Government (C-694/20). The case addresses the question referred by the Belgian Constitutional Court regarding Directive 2018/822 (DAC6) and the right to respect communications between a lawyer and his or her client.
CJ strikes down Luxembourg’s publicly accessible UBO-register (Luxembourg Business Registers, Joined Cases C-37/20, C-601/20)
On 22 November 2022, the CJ delivered its judgment on the compatibility of the public access to UBO-information contained in a register with the fundamental right to protection of private life and the right to protection of personal data. The CJ declared the prescribed public accessibility to the UBO-register invalid.
EU Commission publishes long-awaited ‘VAT in the Digital Age’ proposal
On 8 December 2022, the European Commission published a legislative proposal regarding VAT in the digital age (‘ViDA initiative’) as part of its action plan for fair and simple taxation. This package aims to improve VAT efficiency and to minimize VAT fraud. This is done by modernizing VAT reporting obligations and facilitating e-invoicing, extending the scope of the VAT rules for the platform economy and moving towards businesses having one single VAT registration in the EU.
CJ judgment on benefits-in-kind between members of VAT Group (Finanzamt T, C-269/20)
On 1 December 2022, the CJ delivered its judgment in the case Finanzamt T (C-269/20) which deals with the question of whether the services that a subsidiary performed for the public sector activities of a German VAT group are subject to VAT.
CJ judgment on German VAT Grouping Scheme (Norddeutsche Gesellschaft für Diakonie mbH, C-141/20)
On 1 December 2022, the CJ delivered its judgment in the case Norddeutsche Gesellschaft für Diakonie mbH (C-141/20) on the conditions to form a VAT group and the rights and obligations of a VAT group.