In its judgment of 4 May 2023, the ECJ comments on the VAT treatment of the letting of a building including operating equipment. According to the ECJ, a uniform supply takes precedence over the splitting requirement. In the case of this decision, a VAT-exempt uniform supply was obvious. The German Federal Fiscal Court is now responsible for the final assessment. A number of practical consequences are to be expected for various VAT exemptions and the input VAT deduction. The decision is also likely to have an impact on parallel cases.
Source: kmlz.de
See also
- Summary of ECJ C-516/21: The letting of permanently installed equipment and machinery if ancillary to the leasing a building (under the same leasing agreement) are exempt from VAT
- C-516/21 (Finanzamt X) – Judgment – Exemption for Leasing of immovable property including equipment and machinery
- Roadtrip through ECJ Cases – Focus on ”Exemption – The ”leasing or letting of immovable property” (Art. 135(1)(l))
