ECJ Case C-201/18 (Mydibel) – Questions – VAT correction for sale/lease-back

Preliminary questions asked to the ECJ on 24 April 2018 in case C-201/18 – Mydibel

Facts:

• Mydibel produces potato derivates. It owns several buildings, where the input VAT on all costs (building, maintenance, renovation) has been deducted.
• The buildings have been sold to and leased back from a bank. The tax authorities argue that as of the date of this transaction, the VAT was no longer deductible, and Mydibel received an assessment for the previous years.
• Mydibel does not agree with this correction, arguing that a ‘sale-and-lease-back-transaction’, in itself may be a ‘financial transaction’, but the result is not changing the use and purpose of the building, or the taxable activities of Mydibel.

Questions asked to the ECJ:

Is a VAT correction allowed if it concerns a sale-and-lease-back transaction, whereby this transaction the only exempt transaction is and the use and purpose of the building has not changed?

Source: MinBuza (Dutch)

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