Court of Cassation confirms that right to use water service in exchange for loan reimbursement is a service subject to VAT

The Court’s judgments elaborate on the conditions for applying VAT to such concessions, both from a subjective and objective standpoint. The text also explains the perspective of municipalities and the tax authority, concluding that water supply activities are relevant for VAT purposes, even if the municipality doesn’t directly manage water supply. The Court establishes a synallagmatic relationship between parties, considering the contractual exchange between the operator and the municipality as a service provision subject to VAT. Additionally, the text discusses the relevance of a specific legislative provision, which is not deemed mandatory. Lastly, it highlights that the absence of payment by the operator doesn’t remove the VAT relevance of the operation.

Source: eutekne.info

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