ECJ rules transfer of land with an old building is VAT-exempt

On 4 September 2019, the Court of Justice of the European Union (CJEU) issued a decision (C-71/18) in a Danish case, concluding that a transfer of land including an “old” building is VAT-exempt even where the clear intention at the time of transfer is that the purchaser or a subsequent purchaser of the land will demolish the building. An old building broadly is defined as one that is more than five years old, subject to certain exceptions.

Source: Deloitte.

  • The case can be found HERE
  • A comparison of this case with earlier ECJ case law, can be found HERE