In the era of popularization of “green energy”, the EU Court of Justice issued today two very good judgments important for local government units (LGUs) organizing projects for their residents regarding the installation of RES systems and the removal of asbestos from real estate (judgments C-612/21 Municipality O and C-616/21 Municipality L). In both these cases, the CJEU held that the municipality acting in this respect does not conduct economic activity within the meaning of VAT regulations, therefore it should not account for the VAT due – both on residents’ payments and on the subsidy received.
Source: www.mddp.pl
See also
- C-612/21 Gmina O. (Municipality of O.) – A municipality is not a taxable person due to a project to increase the proportion of renewable energy sources
- C-616/21 Gmina L. (Municipality of L.) – A municipality is not a taxable person for contracting out removal of asbestos
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- For an overview of ECJ cases per article of the EU VAT Directive, click HERE
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