ECJ Case C-225/18 (Grupa Lotos) – Questions – Deduction of input VAT on resale of accommodation and catering

Preliminary questions of 15 May 2018 in Case C-225/18 (Grupa Lotos)

Facts:

Grupa Lotos in Poland acquires, inter alia, accommodation and catering services for her employees as well as for employees of other companies, to which she resells these services.  The central question here is whether Grupa Lotos is entitled to deduct the input tax in cases where it acquires accommodation and catering services in order to resell it (by invoicing) to other taxable persons.

Grupa Lotos does think so, arguing that it acquires services in its own name with a view to subsequent reselling them.

The tax authorities do not agree, based on the rule that the right of deduction or refund of the input tax does not apply to accommodation and catering services, with the exception of prepared meals for passengers which are purchased by taxpayers who offer passenger transport services.

Source (Dutch): Min Buza

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