What constitutes ‘sale’? What Constitutes ‘service’? What is the predominant element in a composite supply consisting of sale and service?
ECJ Ruling
The above questions have arisen for consideration of Courts in jurisdictions having VAT/Sales tax regimes several times in spite of there being accurate definitions for ‘sale’ ‘service’ and ‘composite supplies’. The recent ruling of ECJ in the matter of J.K. Vs. The Dyrektor Izby Administracji Skarbowej w Katowicach (Director of the Chamber of Tax Administration in Katowice, Poland) in C 703/19 presents one more of such scenario where the question was whether ‘take away’ supply of food is liable to fall under ‘Restaurant and Catering Services’ taxable at 5% (as supply of services) or is taxable as supply of prepared meals and dishes taxable at 8% (as sale of goods).
Source Taxsutra
See also
- Roadtrip through ECJ Cases – Focus on ”Composite supplies”
- ECJ VAT C-703/19 (J.K.) – Decision – Clarification of the term ‘restaurant service’ and ‘food’ to which a reduced VAT rate applies
- ECJ Cases C-497/09 (Bog & Others) (Joined case with C-499/09, C-501/09, C-502/09) – Composite supplies – VAT treatment of foods supplied for immediate consumption
