Y leased a stable with tools and machines adapted for raising turkeys. Y received a single payment and believed it was exempt from VAT, but the German tax authorities disagreed, stating that 20% of the payment for the leasing of the tools and machines was not exempt. The CJEU ruled that the rental of permanently installed tools and machines is not exempt from VAT if it is an additional performance to the main performance of leasing a building, which is exempt under Article 135(1)(l) of the VAT Directive, and these supplies constitute a single economic supply.
Source BTW jurisprudentie
See also
- Summary of ECJ C-516/21: The letting of permanently installed equipment and machinery if ancillary to the leasing a building (under the same leasing agreement) are exempt from VAT
- C-516/21 (Finanzamt X) – Judgment – Exemption for Leasing of immovable property including equipment and machinery
- Roadtrip through ECJ Cases – Focus on ”Exemption – The ”leasing or letting of immovable property” (Art. 135(1)(l))
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- For an overview of ECJ cases per article of the EU VAT Directive, click HERE
Latest Posts in "European Union"
- Ecofin report on EU VAT reforms
- Roadtrip through ECJ cases: Focus on Promotional activities/Discounts (Art. 79, 87, 90(1))
- Comments on ECJ case C-234/24 (Brose Prievidza): No VAT Exemption for Tooling Without Physical Movement
- Roadtrip through ECJ Cases – Focus on “Liability to pay VAT – Jointly and severally liability of the payment of VAT” (Art. 205)
- ECJ Customs – C-488/24 (Kigas) – AG Opinion – Traders must inform consumers about customs duties before contracts
