Commentary on ECJ case C-528/19 (Mitteldeutsche Hartstein-Industrie AG)
“The interpretation of the court may bring new rules for the VAT treatment of free of charge supplies of public purpose real estate investments (which usually takes the form of additionally required construction work).”
“One of the most important conclusions to be drawn based on the decision of the court is probably the fact that input VAT is deductible on public purpose investments not exceeding what is necessary for a company to carry out its business activity. The other conclusion is that the free of charge supply of an investment meeting this latter requirement does not result in a VAT payment obligation.”
Source: WTS
For the case, see here: ECJ C-528/19 (Mitteldeutsche Hartstein-Industrie AG) – Judgment – Deduction of input tax for construction work on public roads
