November 26, 2020 Judgment in C-787/18 (Sögård Fastigheter) VAT adjustment, sale of capital goods, TOGC: A Swedish referral asking, where a property is sold under national law introduced in accordance with Article...
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European Court of Justice
ECJ C‑775/19 (5th AVENUE Products Trading GmbH vs. DE) Judgement: Consideration for exclusive distribution right belongs in customs value
5th Avenue, a company established in Germany, trader of manufactured tobacco and items for smokers, and Habanos SA, the Cuban state-owned export company for cigars, concluded an agreement called the ‘Exclusive...
ECJ comment: VAT deductions on professional services related to unrealized acquisition, capital set-aside
The Court of Justice of the European Union (CJEU) rendered judgment (Sonaecom (C-42/19, 12 November 2020)) holding that value added tax (VAT) may be deducted on purchased services in the event of a proposed but...
CJEU scrutinizes VAT recovery due to unplanned use of funds by holding company
On November 12, 2020 the Court of Justice of the European Union (“CJEU”) ruled (C-42/19) that mixed holding companies are allowed to recover VAT on costs related to an aborted share transaction.
Source: Deloitte
Right to deduct VAT on “aborted deal” costs of holding company: Balanced decision of the Court of Justice of the European Union in the case C-42/19
On the one hand, the CJEU decided that this company is allowed to deduct the VAT incurred on market studies related to the aborted transaction. However, on the other hand, the CJEU refused the deduction of the VAT...
ECJ settles dispute on VAT deduction abort costs
In its judgment of 12 November 2020 in the ‘Sonaecom’ case (C 42/19), the European Court of Justice (ECJ) ruled that a company can deduct VAT on abort costs, provided the company intended to render VAT taxed services to...
Flashback on ECJ cases – Joined Cases C-427/16 and C-428/16 (CHEZ Elektro Bulgaria and FrontEx International) – local pricing legislation may not lead to double VAT on lawyer fees
This case was about Bulgarian legislation which does not allow a lawyer and his client to agree remuneration in an amount below the minimum amount laid down in a regulation issued by a lawyers’ professional organisation...
Flashback on ECJ cases – C‑500/16 (Caterpillar Financial Services vs PL) – Deadline is applicable, even if the ECJ judgement due to which overpayment became clear was issued after that period
The Polish leasing company Caterpillar Financial Services offers its lessees the option of insuring the leased property. If desired, the insurance contracts are concluded by Caterpillar Financial Services with an...
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