- Advocate General Kokott determined that the tooling transactions between Brose SK, IME Bulgaria, and Brose DE qualify as a taxable supply in Bulgaria, rejecting the notion that the granting of disposal power over special equipment constitutes a tax-free intra-Community supply (ICL).
- The Bulgarian tax authorities’ claim that the supply of special equipment and manufactured components forms an economically indivisible supply was challenged, with the AG asserting that the tooling does not serve as a non-independent ancillary supply to the tax-free ICL.
- Kokott emphasized that under Article 4 of EC Directive 2008/9, Brose SK retains the right to claim a refund for the VAT paid, indicating that the transactions should not be considered part of a single composite, tax-exempt ICL.
Source: taxlive.nl
See also
- Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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.
