The German Federal Tax Court (BFH) submitted a question to the Court of Justice of the European Union (CJEU) on the VAT treatment of heat supplied from a biogas facility.
Questions
- 1. Does an “application of a taxable person of goods forming part of his business assets … free of charge” within the meaning of Art. 16 of the VAT Directive exist, if the taxpayer provides heat from their business free of charge to another taxpayer for that taxpayer’s commercial activity (in this case: contribution of heat from the CHP of a supplier of electricity to an agricultural company for the heating of asparagus fields)? Does this depend on the taxpaying recipient using the heat for purposes which would entitle them to deduct input VAT?
- 2. Does the fact of a disposal (Art. 16 of the VAT Directive) limit the cost price within the meaning of Art. 74 of the VAT Directive by making it necessary to include only costs subject to input VAT?
- 3. Does the cost price include only the direct production or generation costs or also costs that can only be indirectly imputable costs such as, for example, financing expenses?
Source KPMG
