- EU Law Compliance on VAT Separation: Advocate General Ćapeta has determined that it is not contrary to EU law for hotels in Germany to tax ancillary services, such as breakfast, separately at the standard VAT rate of 19%, even when these services are provided alongside short-term accommodation.
- Case Background: J-GmbH, a hotel and restaurant operator, argued for a reduced VAT rate of 7% on combined services, including breakfast and parking, but German tax authorities contended that these services should be taxed separately at the standard rate, as they are independent and not ancillary to the accommodation.
- Legal Precedent and Implications: The Advocate General’s conclusion supports the validity of German legislation that requires the separation of VAT treatment for such services, reinforcing that the VAT Directive allows for this distinction, regardless of the all-inclusive nature of bookings offered to customers.
Source Taxlive
See also
- ECJ VAT C-409/24, C-410-24, C-411/24 – AG Opinion – VAT Treatment of Ancillary Services: Separate Standard Rate Taxation Allowed – VATupdate
- Roadtrip through ECJ cases: Focus on ”VAT rates” (Art. 96-99) – VATupdate
- Roadtrip through ECJ Cases – Focus on ”Composite supplies” – VATupdate
- Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
- Podcasts & briefing documents: VAT concepts explained through ECJ/CJEU cases on Spotify
Latest Posts in "European Union"
- Commission Backs Italy’s VAT Derogation Through 2028
- Comments on GC T‑575/24 – AG – Contrary to EU law if services provided to members are regarded as internal acts
- Comments on ECJ C-515/24 (Randstad España) – AG – Introduction of exclusion of VAT deduction of representation expenses by Spain not contrary to EU law
- Briefing Document & Podcast: VAT concepts ”Chain Transactions” & ”Triangulation” explained based on ECJ/CJEU cases
- Comments on ECJ C-744/23: No-Cure-No-Pay Services Are Subject to VAT
