A Oy offered its customers a data center service. In the service, the customer-owned servers were placed in the company’s computer rooms, which were equipped with the necessary telecommunication connections and where, among other things, humidity and temperature were regulated to serve the purpose of the servers. The service included a equipment cabinet with a lockable door, electricity and an optimal environment for the use of servers. The company’s customers brought their own servers to equipment cabinets that were bolted to the floor. The customer did not have his own key to the equipment cabinet, but the customer received a key from the janitor against his ID card to access the equipment cabinet. There could be servers for multiple clients in the same hardware cabinet.
The issue of the country of sale provision applicable to the service was pending. After seeking a preliminary ruling from the Court of Justice, the Supreme Administrative Court held that the service did not constitute a transfer of the right to use immovable property within the meaning of Article 27 of the VAT Law or an immovable property service within the meaning of Article 31a of Implementing Regulation 282/2011. The Supreme Administrative Court did not change the outcome of the administrative court’s decision, in which the service entity was considered to be a service subject to the general provision of the country of sale of the service provided for in section 65 of the VAT Act.
Source: kho.fi
See also
- ECJ C-215/19 (Veronsaajien oikeudenvalvontayksikkö – A Oy) – Judgment – Colocation services are not “real estate related” services
- Other posts on case ECJ C-215/19 can be found HERE.
