The EDPB Recommendations: International Data Transfer after Schrems II

In the aftermath of the Court of Justice of the European Union decision in Data Protection Commissioner v Facebook Ireland Limited, Maximillian Schrems (Case C-311/18; respectively, the “Court” and “Schrems II”) , last November 10th, 2020, the European Data Protection Board (the “EDPB”) has published Recommendations 01/2020 on measures that supplement transfer tools to ensure compliance with the EU level of protection of personal data (“Recommendations 01”) and Recommendations 02/2020 on the European Essential Guarantees for surveillance measures (“Recommendations 02”) , to assist European data exporters to comply with their obligations to lawfully transfer personal data outside the EEA.

New requirements for Italian transfer pricing documentation

The long-awaited Act of the Director of the Revenue Agency no. 360494 introduces significant and substantial changes to the rules related to the "appropriate" transfer pricing documentation which shall be prepared in order to support that the arm’s length principle has been properly applied to intercompany transactions according to the Article 110(7) of the Italian Tax Code (“ITC”), and hence establishes the new requirements for accessing to the penalty protection regime (see Article 1(6) and Article 2(4-ter) of Legislative Decree no. 471/1997).

The relationship between an independent group of persons and members of a VAT group

With its decision in Case C-77/19 (Kaplan International Colleges UK) of 18 November 2020, the Court of Justice of the European Union (hereinafter, also the “CJEU” or the “Court of Justice”) offers some clarification on the scope of application of the VAT exemption provided for services rendered by an independent group of persons to its members, where some of those members also participate in a VAT group.

VAT deduction for “transaction costs” incurred by mixed holding companies

The Court of Justice of the European Union confirms VAT deductibility even if the purchase of shares is unsuccessful, provided there is an intention to carry out an economic activity subject to VAT. On the other hand, the deduction is not allowed if this intention changes and the mixed holding company carries out exempt services.

COVID-19, crucial the definition of “enterprise” in the Temporary Framework

Several measures were enacted by the Italian legislator in support of companies issued "in compliance with the limits and conditions" of the European Commission Communication C (2020) 1863 of 19 March 2020 "Temporary framework for state aid measures to support the economy in the current Covid-19 outbreak”, commonly known as "Temporary Framework".

The contract for commission sales and the mandate without representation under VAT

With its decision in Case C-734/19 of 12 November 2020, the Court of Justice of the European Union (CJEU) ruled, inter alia, on the possible application of the special VAT regime provided for undisclosed agents/commissionaire pursuant to Articles 28 and 14, paragraph 2, letter c) of Directive 2006/112/EC, even in a case where no mandate without representation exists.