The German Federal Tax Court (BFH) submitted a question to the Court of Justice of the European Union (CJEU) on the VAT treatment of heat supplied from a biogas facility.
Questions
- 1. Does an “application of a taxable person of goods forming part of his business assets … free of charge” within the meaning of Art. 16 of the VAT Directive exist, if the taxpayer provides heat from their business free of charge to another taxpayer for that taxpayer’s commercial activity (in this case: contribution of heat from the CHP of a supplier of electricity to an agricultural company for the heating of asparagus fields)? Does this depend on the taxpaying recipient using the heat for purposes which would entitle them to deduct input VAT?
- 2. Does the fact of a disposal (Art. 16 of the VAT Directive) limit the cost price within the meaning of Art. 74 of the VAT Directive by making it necessary to include only costs subject to input VAT?
- 3. Does the cost price include only the direct production or generation costs or also costs that can only be indirectly imputable costs such as, for example, financing expenses?
Source KPMG
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- For an overview of ECJ cases per article of the EU VAT Directive, click HERE
Latest Posts in "European Union"
- Comments on ECJ C-515/24: ECJ Upholds Spanish VAT Deduction Ban for Entertainment Expenses at Accession
- EU Court Clarifies VAT Deduction Rights, Limits Formal Barriers in Key 2026 Rulings
- Comments on ECJ case C‑436/24: Loyalty Points and In-Game Currencies Are Not Vouchers for VAT Purposes
- Online Workshop: Simplifying EU Excise Procedures – Share Experiences and Propose Solutions
- Comments on ECJ Cases C-409/24 bis C-411/24: Separate VAT Rates for Hotel Services and Ancillary Benefits in Germany
