The Bulgarian company rented tourist apartments and applied a reduced 9% VAT rate when it had the appropriate certificate. The tax authority disagreed and required the company to apply the standard 20% VAT rate when it did not have the certificate. The Court ruled that the requirement of having a certificate for applying the reduced VAT rate is not permissible. It stated that the rental of apartments falls under “accommodation provided in hotels and similar establishments” which allows for a reduced VAT rate. The Court also emphasized that the requirement of a certificate does not constitute a “concrete and specific aspect” and may violate the principle of neutrality. Additionally, it highlighted that tax evasion and avoidance concerns should not be used to justify the requirement of a certificate for applying the reduced VAT rate.
Source Pawel Mikula
See also
- C-733/22 (Valentina Heights) – Judgment – The eligibility for a reduced VAT rate for hotels cannot be contingent upon possessing a categorization certificate
- Roadtrip through ECJ cases: Focus on ”VAT rates” (Art. 96-99)
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
Join the Linkedin Group on ECJ VAT Cases, click HERE
