- The European Court of Justice (ECJ) ruled on a case regarding reduced VAT rates for building renovation services in Portugal.
- The case involved a Portugal-based commercial company providing services to buildings owned by three commercial entities.
- The Tax Agency denied the application of the reduced VAT rate, arguing that it only applied to properties used for residential purposes at the time of the services.
- The ECJ clarified that the EU Directive on VAT did not prohibit national legislation from implementing a reduced VAT rate for renovation and repair services, as long as the dwellings are currently occupied for residential purposes during the work.
- The judgment emphasized that the actual use of a property for residential purposes is not affected by seasonal or specific periods of occupancy.
- The ECJ stated that the temporary vacancy of a private dwelling does not change its classification as a private dwelling.
Source: globalvatcompliance.com
See also
- C-433/22 (HPA – Construções) – Judgment – Reduced VAT for renovating and repairing private dwellings which are used as private dwellings
- Summary of ECJ C-433/22 (HPA – Construções): Application of Reduced VAT Rate for Repair and Renovation of Private Dwellings
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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
