On Monday, 25.05.2020, from 19:30, industry experts will discuss the topic:
Hotels & gastronomy in the Corona crisis: hope in sight or wave of bankruptcies ahead?
The coronavirus poses massive problems for the hotel and catering industry: The approximately 223,000 companies in the sector lost an estimated ten billion euros in turnover by the end of April. Around 70,000 hotel and catering businesses are said to be facing insolvency in the corona crisis, with small and medium-sized businesses in particular having little or no financial buffer.
A gradual reopening of the hospitality industry has been decided, but how this is to be achieved in practice will probably only become clear in the coming weeks. It is also questionable how many Germans will book overnight stays and visit restaurants again in their usual form.
What is the actual situation in the local hotel and restaurant industry? What is the next step? What solutions and ideas from the crisis are there?
On the panel are:
Julius Wagner, Chief Executive Officer, Hotel- und Gastronomieverband DEHOGA Hessen e.V.
Rolf Westermann, Chief Editor, ahgz Allgemeine Hotel- und Gastronomie-Zeitung
Matthias Frank, Partner Practice Group Hospitality, Kucera Rechtsanwälte
KUCERA advised Arminius on the purchase of the PepsiCo German headquarters building. The office building is located at Hugenottenallee 173 in Neu-Isenburg and comprises 6,400 sqm rental space and around 110 parking spaces. Read more…
KUCERA partners Andre Barth and Oliver Platt LL.M (UW Madison) (Transaction & Finance) together with Milena Stefanovic (Real Estate & Finance) and Alexander Orth (Real Estate) were responsible for the project. KUCERA partner Isabel Tannenberg (Tax) advised on tax law together with Nicole Sturmfels (Tax).
KUCERA advised the developer Groß & Partner on the lease agreement for Allen & Overy LLP. Allen & Overy rents approx. 10,000 sqm in the mixed-use high-rise quarter Four in downtown Frankfurt. From 2025 on, the firm‘s new office space will be located on floors 22 to 28 in Tower 1. Read more…
Responsible was KUCERA partner Oliver Platt LL.M (UW Madison) together with Gözde Sönmez (Real Estate). KUCERA partner Isabel Tannenberg (Tax) advised on tax law.
KUCERA advised the Arminius Group on the purchase of the “Stuttgarter Tor”. The property was acquired from Hines European Value Fund. The “Stuttgarter Tor” is located at Stresemannstrasse 79 in the district “City Prag” in Stuttgart-Feuerbach. The office complex comprises three office buildings with a total of approx. 15,000 sqm of lettable space, which are fully let. Read more…
KUCERA partners Andre Barth and Oliver Platt LL.M (UW Madison) (Transaction & Finance) together with Alexander Orth (Real Estate & Finance), Alexander Hanf (Real Estate & Finance) and Gözde Sönmez (Real Estate) were responsible for the project. KUCERA partner Isabel Tannenberg (Tax) advised on tax law together with Nicole Sturmfels (Tax).
KUCERA advised Arminius on the purchase of an office building. The building is located at Hanauer Landstraße 164 in the “Lindley Quartier” in Frankfurt’s Ostend district. The rental space amounts to around 6,400 sqm. and is occupied by “Universum Inkasso” and “FCA Germany”. The sales price amounts to a mid double-digit million euro amount . Read more…
Responsible were KUCERA partner Oliver Platt LL.M (UW Madison) and Andre Barth (Transaction & Finance) together with Alexander Orth (Real Estate & Finance). KUCERA partner Isabel Tannenberg (Tax) advised on tax law.
KUCERA has advised Merz Real Estate GmbH & Co. KG on share purchase agreements and an Investment Agreement concerning Noratis AG. In a first step, Merz will acquire 1.06 million shares from Noratis CEO Igor Christian Bugarski and another core shareholder at a price of EUR 21.00 each, corresponding to a 29.4 % stake. In a second step, Noratis AG is planning a capital increase of 4 % to EUR 3.9 million, which Merz will subscribe for EUR 19.80 per share, so that its shareholdings will grow to over 33 %. At the same time, Merz has committed itself to investing approximately 50 million euros in Noratis AG by the end of 2024.Read more…
KUCERA partner Oliver Platt LL.M (UW Madison) (in charge) and Andre Barth (Transaction & Finance) together with Alexander Hanf (Corporate & Finance), Alexander Orth (Real Estate), Raphael Polensky (Real Estate), Gözde Sönmez (Real Estate) and Florian Weber (Employment Law) were responsible for the transaction. KUCERA partner Isabel Tannenberg (Tax) advised on tax law.
Despite the pandemic, KUCERA is fully operational. “Our clients will continue to be advised,” says Dr. Stefan Kucera, Managing Partner of KUCERA. KUCERA has activated contingency plans, which include the deployment of professionals from the home office and the maintenance of central back office functions in the firm. Travel and meetings will be avoided. “Instead, we rely on modern communication, which enables us to assist our clients at all times, even in these difficult times,” says Kucera, explaining the emergency concept. In addition, greater attention is being paid to hygiene in the offices; employees are encouraged to keep social contacts to a minimum. The notary’s office is nevertheless open until further notice. We will keep you informed about new developments.
Tax law. The deduction of input VAT on basis of a construction work invoice containing an abstract service description of the executed work can be sufficient if it is apparent to which specific construction project the invoice relates.
Judgement of the Federal Fiscal Court (BFH) dated 15 October 2019, ref. V R 29/19 (formerly V R 44/16)
A service company in the industrial sector claimed input VAT from construction work invoices. The financial authorities, however, denied the input VAT deduction as the invoice details were allegedly not specific enough. On the one hand the financial authorities presumed a lack of information re the dimensions of the constructed object. On the other hand the invoice presumably did not include the exact execution date of the construction work. The company, however, stated that the invoice details were sufficient as the construction project could be verified from the other details of the invoices and the date of the construction work was indicated by the date the invoice had been issued. The Federal Fiscal Court confirmed the company’s opinion.
Section 14 of the German VAT Code (UStG) sets out the invoice details required for a deduction of input VAT. These details are mandatory in order to put the tax authorities in a position to identify and check the invoiced services properly. According to the Federal Fiscal Court it shall, however, be sufficient if the details enable the tax authorities to easily identify the invoiced services. Therefore, an exhaustive description of the invoiced services was not deemed necessary. In the case at hand, these requirements were met as the overall invoices gave enough details about the specific building project and the place of its execution. With regard to the date of the executed services, the Federal Fiscal Court continues its previous case law (Ref. V R 18/17). If the invoice is being issued immediately after the building has been finalized and approved, as is customary in the building industry, the date of the execution of the construction work corresponds to the date of the invoice and, therefore, is sufficient, unless apparently indicated otherwise.
What is to be done?
The Federal Fiscal Court confirms that service descriptions must indeed be specified in the relevant invoice and that it is not sufficient to merely state a service category. Therefore, the invoice should always set out the required additional information. Please note, that even the calendar month in which the service was rendered can be a sufficient execution date. Therefore, the Federal Court of Finance allows invoices re construction works to be issued without a specific execution date, if it can be assumed that the work was performed in the month in which the invoice was issued. However, in order to avoid risks we recommend to always set out a specific execution date or at least the addition “date of execution equals date of issued invoice”.
Lawyer and tax consultant Isabel Tannenberg of KUCERA.
KUCERA advised Deutsche Hospitality on the lease agreement for the Steigenberger Kongress Hotel Frankfurt Airport. The hotel will be one of the largest conference and congress hotels in Germany in Frankfurt’s newest district Gateway Gardens. It will offer a total of 18 floors, 527 rooms and suites and a congress and conference centre with 5,500 m² at a height of 70 m. The opening is planned for 2024. Read more…
Responsible was KUCERA partner Matthias Frank together with Birgit Böhn (both Hospitality).
KUCERA advised Deutsche Hospitality on the lease agreement for the Zleep Hotel Frankfurt Airport. The hotel will have 165 rooms, a lobby and snack bar as well as a fitness area and numerous parking spaces including an underground car park at Frankfurt Airport. The opening is planned for spring 2022. Read more…
Responsible was KUCERA partner Matthias Frank together with Birgit Böhn (both hospitality).