In Gmina Wroclaw (C-604/19), the Advocate General was asked to opine on whether a payment from a usufructuary of a piece of and to the owner of the legal title to the land which resulted in the usufructuary becoming the outright owner of the land, was subject to VAT. The municipality of Wroclaw was of the owner of some land subject to a third-party perpetual usufruct (a civil law concept, similar to the common law concept of a lease) requiring the payment of an annual fee by the usufructuary (akin to a lessee). As part of a reform of the law of property, the usufructuary was able, on payment of a ‘transformation fee’ to consolidate its rights into full property ownership so that it was able to sell the land as well as to use it.
Source: dlapiper.com
Latest Posts in "European Union"
- EU VAT Guide: Disbursements vs Recharges Classification and Tax Implications
- Hungary’s Carbon Tax Conflicts with EU Emissions Trading System Directive 2003/87
- EU VAT Compliance: B2C Distance Sales Rules and €10,000 Threshold Guide
- EU Parliament Backs Tax Code Simplification to Boost Economic Growth
- Roadtrip through ECJ Cases – Focus on “Liability to pay VAT – VAT shall be payable by any person who enters the VAT on an invoice” (Art. 203)
