- European Court of Justice ruled on free provision of heat
- Case involved a German partnership generating heat from a biogas plant
- Partnership claimed 100% VAT deduction for heat generation
- Majority of heat was provided for free to two businesses
- Court ruled that VAT must be charged on cost of free heat provision
- VAT must be calculated based on market price or cost price, including indirect costs
- Implications for water boards providing free heat from cogeneration plants
- If VAT was deducted on costs, it may lead to VAT liability for the water board
Source: efkbelastingadviseurs.nl
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.
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