CJEU gives precedence to national legislation over concept of principal and ancillary supplies
A recent judgment of the Court of Justice of the European Union (CJEU), arising from disputes in Germany, shows that an “all-inclusive” package may be split into a part subject to the reduced rate and a part subject to the standard rate, without…
CJEU on VAT treatment of transfer pricing adjustments
The Court of Justice of the European Union (CJEU) has ruled on a case concerning transfer pricing in relation to vehicle repairs. According to its judgment, a transfer pricing adjustment does not constitute consideration for a supply of services…
CJEU: input VAT deduction for mandatory hospital equipment depends on its actual use
The Court of Justice of the EU (CJEU) confirmed that input VAT deduction for healthcare providers depends on the asset’s actual use, not on the fact that its acquisition is required by law. According to the CJEU, the decisive factor is always a…
CJEU: VAT treatment of loyalty points
In its recent judgment in Case C 436/24 Lyko Operations, the Court of Justice of the European Union (CJEU) held that points awarded under a customer loyalty scheme do not constitute “vouchers” pursuant to the VAT Directive where their use is…
CJEU: airlines must refund ticket prices including agent’s commission
Airlines’ options to avoid paying compensation to passengers are becoming even more limited. A recent CJEU ruling states that if a flight purchased through an agent authorised to sell tickets for a given airline is cancelled, passengers may claim a…
EU General Court on application of simplification measure to triangular transaction in four-party supply chain
The judgment of the General Court of the EU in the MS Ključarovci case (T-646/24) provides a more precise interpretation of the conditions for applying the simplification for triangular transactions under Article 141 of the VAT Directive. The…
CJEU rules on VAT treatment of Czech ‘society‘ without legal personality
The Tenth Chamber of the Court of Justice of the European Union (CJEU) ruled on case C-796/23 Česká síť s.r.o. It concerns the determination of the taxable person who performed a taxable supply and is obliged to pay value added tax in the context of…
CJEU: supply of components and supply of equipment for their manufacture not a single supply for VAT purposes
Are the supply of components (products) and the supply of equipment necessary for their manufacture a single supply subject to the same VAT treatment? According to a judgment of the Court of Justice of the European Union (CJEU), no. Since the…