- The court held that a gratuitous contribution of rented real estate to a wholly owned company is not a supply for consideration because there is no reciprocal performance.
- However, it can count as a free disposal for non-business purposes under Article 16 of the VAT Directive if input VAT was initially deducted.
- Article 19 of the VAT Directive prevents national rules from narrowing the non-supply rule to only certain types of income-generating transfers.
- The court also confirmed that Article 19(1) has direct effect, so taxpayers can rely on it against the tax authority.
Source: btwjurisprudentie.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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