- The Portuguese court asked a question regarding whether a reduced VAT rate of 5% should apply to renovation services carried out by HPA – Construções SA on buildings intended for residential purposes.
- HPA charged 5% VAT, but the Portuguese Tax Authorities argued that the normal tax rate of 21% should apply because HPA could not prove that the contracts were for buildings used for residential purposes.
- Advocate General Kokott concluded that the reduced VAT rate should only apply to services for the renovation and repair of private dwellings that are used as private dwellings at the time of the transactions, including if the recipient makes the property available to a third party as a home.
- Occupancy during the service is not necessary.
Source Taxlive
See also
- ECJ C-433/22 (HPA – Construções) – AG Opinion – Reduced VAT for renovating and repairing private dwellings which are used as private dwellings
- Roadtrip through ECJ cases: Focus on ”VAT rates” (Art. 96-99)
