Y leased a stable with tools and machines adapted for raising turkeys. Y received a single payment and believed it was exempt from VAT, but the German tax authorities disagreed, stating that 20% of the payment for the leasing of the tools and machines was not exempt. The CJEU ruled that the rental of permanently installed tools and machines is not exempt from VAT if it is an additional performance to the main performance of leasing a building, which is exempt under Article 135(1)(l) of the VAT Directive, and these supplies constitute a single economic supply.
Source BTW jurisprudentie
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))
