- ECJ issued a ruling on November 7, 2024 regarding VAT exemption for the supply of land with only prefabricated foundations for future residential buildings
- A company in Denmark tried to claim VAT exemption for the sale of 16 plots of land with foundations, arguing that foundations are considered buildings under the VAT Directive
- The Court ruled that foundations do not meet the definition of a building under the VAT Directive and therefore the supply of land with only foundations should be subject to VAT
- The ruling serves as a reminder for taxpayers, especially in the real estate industry, to carefully analyze the legal status of properties before entering into transactions to avoid potential tax implications.
Source: mddp.pl
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.
