- CFE’s Opinion Statement says the EU VAT distinction between goods and services is increasingly hard to apply to modern hybrid transactions.
- Digital models, bundled offers, installation, maintenance, and customised products create uncertainty and inconsistent national treatment.
- The current approach relies heavily on CJEU case law, using tests like single supply, dominant element, average consumer, and economic reality.
- CFE says this case-law framework is fragmented and not always easy to apply, leading to compliance costs and possible retrospective assessments.
- It calls for clearer EU-level guidance and more harmonised rules for borderline and mixed supplies.
Source: taxadviserseurope.org
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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