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ECJ – C-449/19 (WEG Tevesstraβe vs DE) – AG Opinion – VAT exemption for supplies of heat by owners’ associations for owners

Source: Curia

On Sept 10, the AG Opinion was issued in the case C-449/19 (WEG Tevesstraβe vs DE). Topic of the case is VAT exemption for supplies of heat by owners’ associations for owners.

Articles discussed of the EU VAT Directive 2006/112/EU: Article 135(1)

AG Opinion

AG proposes that the Court answer the question referred by the Finanzgericht Baden – Württemberg (Finance Court, Baden – Württemberg , Germany) as follows.

Council Directive 2006/112 / EC of 28 November 2006 on the common system of value added tax must be interpreted as permitting national legislation under which the supply of heat to apartment owners by a group of apartment owners is exempt from value added tax. value added tax, in so far as the consideration received by that entity for the supply of heat covers only those charges and expenses incurred for the supply of heat to the common areas of the property.

However, Directive 2006/112 / EC must be interpreted as precluding the same national legislation in so far as the consideration received by that entity for the supply of heat relates in whole or in part to the supply of heat to individually owned shares.

It is for the national court to determine the circumstances in which the supply of heat is reimbursed in the present case.

Facts

Dispute about the deduction of input tax on the purchase and operating costs of a combined heat and power plant (applicant, association of home and co-owners, a GmbH, government agency and municipality). For 2012, the applicant declared input tax of € 19,765.17, of which the defendant deducts 28% as part of the electricity generation costs. A deduction on the part that is related to heat generation is refused because deliveries of heat to owners are tax-free. An appeal against this refusal was made on 13.12.2016 because the objection was rejected.

See also ECJ C-449/19 WEG Tevesstraβe vs DE – Questions – VAT exemption for supplies of heat by owners’ associations for owners

See also taxlive.nl

 

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