- Conversion of natural gas to electricity without transfer of ownership is not a supply for VAT purposes.
- X and Y have an agreement to convert natural gas to electricity.
- X provides natural gas to Y for conversion.
- Ownership of natural gas remains with X until conversion.
- X gains ownership of generated electricity immediately after production.
- Y receives a fixed fee and a fee per MWh of electricity generated.
- Conversion is at the expense and risk of X.
- The transfer of natural gas and electricity does not constitute a supply for VAT.
- Y’s service of converting gas to electricity qualifies as a service for VAT.
Source: taxlive.nl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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