Preliminary questions asked to the ECJ on 13 June 2018 in case C-265/18 (Jarmuskiene).
Facts:
- The case concerns the supply of a plot of agricultural land. The buyer received a permit to build a house and two buildings for rural tourism on the plot. Next, part of the land and part of the dwelling on that land were sold, with VAT.
- The tax authority regarded the immovable property sold as one single property, whereas the taxable person argued that two separate goods were sold, namely 1) a part of the plot of land and 2) a part of the dwelling. Only one part exceeded the VAT threshold, and thus was subject to VAT, not both.
- According to the tax authorities argued that it was a single delivery of goods, because the goods could not be delivered separately, as they were interconnected and economically formed one whole.
- The national Court considers that the supply of a building and the corresponding plot of land is inextricably linked. However, under national law, it is possible to supply a building without the transfer of the right of ownership to the corresponding plot of land.
The question asked to the ECJ is:
If two goods are supplied with the same transaction, but the national VAT threshold is exceeded only by the delivery of one of these goods, is than the taxpayer (the supplier) obliged to calculate and pay the VAT (1) on the whole amount of the transaction (on the amount of the delivery of both goods) or (2) only on the part of the transaction that exceeded the aforementioned ceiling (on the amount of the delivery of one of the goods)?
Source: MinBuza (Dutch)
