CJEU – Recent Developments in Value Added Tax 2021

S. 1381. Introduction

In 2021, a number of cases have been decided by the CJEU that deal (at least to some extent) with the notion of taxable persons as laid down in Arts. 9 et seq. of the VAT Directive.

Firstly, two cases that (in part) deal with Art. 9 of the VAT Directive will be discussed, the LN case and the EQ case. This will be followed by the (latest) Gmina Wrocław case that deals with the application of Arts. 9 and 13 of the VAT Directive. Subsequently, two decisions on VAT grouping will be dealt with: the Danske Bank case and the M-GmbH case. Lastly, related issues will be discussed. Firstly, the P case that deals with the adjustment of invoices. Secondly, the ALTI case that deals with joint and several liability.

2. The LN case

2.1. Facts of the Case

In 2009, LN granted a number of loans to a third party that were secured by mortgages on several buildings. As the loans were not repaid, the buildings were auctioned and three of them were awarded to LN. Each year between 2010 and 2012, LN sold one of those buildings in addition to another sale of a building that was acquired, in 2005.

The main question of the LN case was, whether the status of a taxable person is conferred to an entit...