VAT Exemption for CO₂ Emission Allowance Forward Transactions Under EU Court Review

The Court of Justice of the European Union will decide whether forward transactions with CO2 emission allowances as underlying instruments are VAT exempt if settled only in cash
The Supreme Administrative Court asked the CJEU whether cash settled transactions without transfer of allowance ownership qualify for VAT exemption
Tax authorities believe that the mere possibility of delivering emission allowances is sufficient for VAT exemption
The dispute centers on whether VAT exemption depends on the legal contract structure or the actual cash settlement method
The fundamental question is what determines exemption eligibility in forward transactions involving greenhouse gas emission allowances

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.