The CJEU ruled that by providing generated heat to an entrepreneur for free, Y KG is removing an asset from its business, which should be treated as a supply of goods for consideration. The taxable amount for the free heat should be calculated based on the cost price, which includes indirect costs like financing. It is irrelevant whether the recipients use the heat for transactions entitling them to deduct VAT.
Source Taxlive
See also
- C-207/23 (Finanzamt X) – Judgment – Wood drying and heating as VAT base
- Roadtrip through ECJ Cases – Focus on ”Free Products” (Art. 16)
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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