Do you charge your customers compensation to withdraw from agreements to supply goods or services? If yes you may have a question – Are charges to withdraw from agreements to receive goods or services vatable? Is there VAT on cancellation fees?
The answer is yes. They very well are part of the supplies of goods or services for which you have a contract with your customer.
Source Doshioutsourcing
Related ECJ cases
- ECJ C-43/19 (Vodafone Portugal) – Judgment – Termination fees subject to VAT
- ECJ C-295/17 (MEO – Serviços de Comunicações e Multimédia) – Judgment – VAT on early termination of broadband deal
Latest Posts in "European Union"
- CJEU Clarifies VAT on Transfer Pricing Adjustments: Distinction Between Price Corrections and Services
- ECJ Rules VAT Adjustment Rights Stay With Original Supplier, Not Transferred by Debt Assignment
- VAT or Compensation? CJEU Guidance on Classifying Payments in Commercial Contracts
- EU Court: VAT Adjustment for Irrecoverable Debts Not Allowed for Assignees of Claims
- ECJ Ruling Leaves VAT Treatment of Transfer Pricing Adjustments in Goods Unresolved
