- The Court of Justice of the European Union (CJEU) determined that the remuneration received by rhtb is considered payment for a service rendered.
- Rhtb had initiated work on a €5.4 million project but was later informed by Parkring 14-16 Immobilienverwaltung GmbH that they no longer wanted rhtb to continue the project.
- An Austrian court initially ruled that rhtb was entitled to the full remuneration agreed upon but questioned whether the VAT included should be classified as remuneration.
- The CJEU clarified that the amount owed to rhtb corresponds to the full contractual amount for the service, rather than as a flat-rate compensation for damages.
- The ruling emphasizes that the remuneration is linked to the service performed and not merely a compensation for potential losses.
Sources
See also
- 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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