Roadtrip through ECJ Cases – Focus on ”Margin Tax Scheme in respect of the supply of buildings and building land purchased for the purpose of resale by a taxable person” (Art. 392)

Article in the EU VAT Directive

Article 392

Member States may provide that, in respect of the supply of buildings and building land purchased for the purpose of resale by a taxable person for whom the VAT on the purchase was not deductible, the taxable amount shall be the difference between the selling price and the purchase price

ECJ Cases Decided

• C-299/20 (Icade Promotion Logement SAS) – Margin Scheme on resale of buildings and land cannot be applied in case of significant alterations
• C-191/21 (Ministère de l’Économie, des Finances and de la Relance) – Order – Deliveries of buildings and building land purchased with a view to resale excluded from the Margin Tax Scheme

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