VAT Exemption for CO₂ Emission Allowance Forward Transactions Under EU Court Review

• The Court of Justice of the European Union will decide whether forward transactions with CO2 emission allowances as underlying instruments are VAT exempt if settled only in cash
• The Supreme Administrative Court asked the CJEU whether cash settled transactions without transfer of allowance ownership qualify for VAT exemption
• Tax authorities believe that the mere possibility of delivering emission allowances is sufficient for VAT exemption
• The dispute centers on whether VAT exemption depends on the legal contract structure or the actual cash settlement method
• The fundamental question is what determines exemption eligibility in forward transactions involving greenhouse gas emission allowances

Source: podatki.gazetaprawna.pl

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.

---

---