Although the tax regulations do not use the term “re-invoicing”, it is commonly used in practice in relation to the resale of goods and services. In general, the re-invoicer applies to the buyer the same VAT rate that was applicable to the purchase. Nevertheless, on the basis of charging the tenant with the costs of utilities, the landlord may be obliged to apply a rate different from the one used by the supplier.
As regards the treatment of rental and utilities for VAT purposes, the judgment of the CJEU of 16 April 2015 in case C-42/14, Wojskowa Agencja Mieszkaniowa is of key importance. According to this judgment, as a rule, the supply of utilities provided to the tenant should be considered separate from the rental service (and taxed according to the rules applicable to a given type of media). Recognition of utilities as auxiliary elements of a uniform rental service is acceptable only when a specific service is inextricably linked to the rental and its division would be artificial (in this case, the VAT rate provided for the rental service should be applied to utilities).
Source: martinitax.pl
