- Legal Personality and VAT: Advocate General Kokott of the CJEU has determined that a taxpayer does not need to possess its own legal personality for VAT to be applicable; however, they must have legal capacity.
- Case Background: The case involves Česká síť s.r.o., which collaborates with U.S.-based companies providing internet access in the Czech Republic. The Czech tax authorities classify Česká síť and its branches as a ‘civil company’ without legal personality, making Česká síť liable for VAT on behalf of the entire entity.
- Independent Economic Activity: The Advocate General emphasized that an economic activity is considered ‘independent’ if the taxpayer operates in their own name, regardless of any internal agreements, indicating that compliance with VAT regulations is based on outward actions rather than internal arrangements.
Source: taxlive.nl
See also
- Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
