Gmina O is also a Polish Municipality (similar to a UK’s local authority). This dispute concerns the Municipality’s involvement in a project installing renewable energy source (‘RES’) systems. Residents could volunteer to have solar panels etc. installed. The Municipality enters into a civil law contract with the resident under which residents are required to pay up to 25% of the costs over a 5-year period during which the system remained owned by the municipality. Ownership then transfers. The Municipality receives 75% of the total eligible costs ultimately from an EU fund.
This reference included another question on taxable amount, essentially asking if the 75% subsidy should be included within it. The AG noted that given the view that there is no economic activity and, even if an economic activity is assumed, Article 13 applies so VAT is not due, it is not necessary to answer the question.
Source KPMG
Join the Linkedin Group on ECJ VAT Cases, clickHERE
Latest Posts in "European Union"
- EU Electronic Certificate of Conformity Requirements from November 2026
- VAT Refund Application Formal Errors and Additional Information under Directive 2008/9/EC
- European Commission Issues CBAM Verification and Accreditation Guidance Ahead of Definitive Regime
- General Court VAT Case – T-407/26 (Wagner Sport Signage) – Questions – EU VAT refund application: missing VAT identification number for a single invoice
- The Transfer of Own Goods Under ViDA: From Today’s Registration Maze to the Single VAT Registration
