The VAT treatment of recharging services creates uncertainty for economic operators. The Court of Justice of the European Union (CJEU) has clarified that every supply of a service must be regarded as distinct and independent. In cases of recharging, it is important to evaluate whether there are changes in the conditions under which the services were initially procured and whether the nature of the supply may have to be considered as a single supply. If the conditions for the initial procurement are not satisfied, VAT must be charged on the recharge. Additionally, if the nature of the supply has changed, VAT must be charged at the standard rate on the total value of the services.
Source Joseph Sammut
See also
- Roadtrip through ECJ Cases – Focus on ”Composite supplies”
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
