- The CJEU was asked to clarify who is the taxable person for VAT purposes when multiple legal entities interact, specifically regarding the small business threshold.
- Previous German case law required legal capacity for entrepreneur status, meaning fractional ownership communities without legal capacity could not be entrepreneurs.
- German law was amended in 2023 to allow anyone independently carrying out business activities to be considered an entrepreneur, regardless of legal capacity.
- The CJEU ruled that civil law classification is irrelevant; a community of spouses can be an entrepreneur if it acts externally, aligning with the new German regulation.
- The CJEU did not explicitly address whether a fractional ownership community must have legal capacity to be considered an entrepreneur, contrary to the Advocate General’s opinion.
Source: kpmg.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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