In its judgment of 4 May 2023, the ECJ ruled on the VAT treatment of the letting of a building including operating equipment. According to the ECJ, a uniform supply takes precedence over the splitting requirement. In this decision, a VAT-exempt uniform supply was obvious. The German Federal Fiscal Court is now responsible for the final assessment.
A number of practical consequences are to be expected for various VAT exemptions and the input VAT deduction. The decision is also likely to have an impact on parallel cases.
Source: kmlz.de
See also
- Summary of ECJ C-516/21: The letting of permanently installed equipment and machinery if ancillary to the leasing a building (under the same leasing agreement) are exempt from VAT
- C-516/21 (Finanzamt X) – Judgment – Exemption for Leasing of immovable property including equipment and machinery
- Roadtrip through ECJ Cases – Focus on ”Exemption – The ”leasing or letting of immovable property” (Art. 135(1)(l))
- 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
Latest Posts in "European Union"
- Agenda of the ECJ/General Court VAT cases -8 Judgments, 1 AG Opinion and 1 Hearing till March 12, 2026
- General Court VAT Case: T-880/25 (Czechanowicz Ekologia i Zielen) – Questions – Invoice‑Level Data Requirements in EU VAT Refunds
- General Court VAT case T-851/25 (Roenes) – Questions – Transfer of a Totality of Assets: Economic Continuity vs. Supplier Intention
- Business Leaders Call on EU to Modernize Customs Union and Revive Türkiye Membership Talks
- EU VAT Compliance Gap Hits €128 Billion in 2023, Driven by Six Major Economies
