CJEU – Recent Developments in Value Added Tax 2021

S. 1631. Introduction

1.1. The main themes of this contribution and the subtopics

This contribution focuses on the issues in the case law of the Court of Justice of the European Union (Court) 2021 that relate to taxable and non-taxable transactions. This means that when discussing a judgment that deals with several other interesting aspects, we limit ourselves to the description of the taxability of the transaction in question.

The question of the taxability of the transaction means, in particular, that it must be ascertained whether the transaction is: a supply pursuant to Art. 2(1)(a) of the VAT Directive; an intra-Community acquisition of goods pursuant to Art. 2(1)(b) of the VAT Directive; or a supply of services pursuant to Art. 2(1)(c) of the VAT Directive; or an importation of goods. The first three categories require supplies to be effected for consideration.

The fact that a supply of a good, an intra-Community acquisition or a service is for consideration, is only the first step in establishing that the transaction is also taxable. Only if such transactions, effected for consideration, are carried out in the course of an economic activity, as referred to in Art. 9 of the VAT Directi...