- Y KG operated a biogas production facility in Germany
- Y agreed to provide excess heat to a neighbouring asparagus farmer for free
- German tax authorities assessed Y for VAT on deemed supply of goods
- CJEU endorsed the tax authorities’ approach
- Y had recovered VAT on the facility but did not account for VAT on the heat given away
- Exceptions to deemed supplies of goods did not apply in this case
- CJEU provided guidance on valuing the heat given away, including financing costs.
Source: taxscape.deloitte.com
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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