The ECJ received questions from the Portuguese Court in Case C-278/18 on 13 June 2018, regarding the transfer of the exploitation rights of a vineyard.
Simplified facts:
- The applicant entered into an agreement with a contractor, under which the applicant transferred the agricultural exploitation of a couple of vineyards. The contractor is a grape grower and used the land to produce grapes.
- A tax audit was carried out with the applicant, after which an assessment was raised as the Portuguese tax authorities regarded the transfer of the exploitation rights as taxable services.
- The applicant claims that he is exempt from VAT, arguing that the exploitation rights related to immovable property.
Preliminary questions:
Must article 135 (1) (l) of Council Directive 2006/112 / EC of 28 November 2006 on the exemption for the letting of immovable property be interpreted as meaning that that exemption applies to a agreement to transfer the agricultural exploitation of rural immovable property from vineyards to a company that has agricultural purposes as a social purpose, whereby this agreement is concluded for a period of one year and can be automatically extended for periods of the same duration and on the basis thereof end of each year the relevant rent must be paid?
Source: MinBUZA (Dutch)
