CJEU – Recent Developments in Value Added Tax 2015

I. S. 181Introduction

In addition to a – more or less – innovative decision on the German understanding of VAT grouping, the CJEU addressed a number of other questions regarding the interpretation of Arts. 9 to 13 VAT Directive. This chapter will discuss the question asked to the Court of whether the attribution of capital goods to a taxpayer’s private assets leads to the non-applicability of VAT where the goods are subsequently used for economic activities. Furthermore, this chapter will briefly discuss the question of whether Member States are obligated to register a taxpayer for VAT purposes by taking non-VAT tax returns into account. Regarding public bodies, the Court was required to deal with the question of whether an entity established by public law and performing services on the basis of public law is to be considered as a public body in consideration of Art. 13 VAT Directive even though it is established as a private entity. Moreover, the Court was asked whether a public body’s budgetary entities are independent taxable persons or whether the public body is a taxable person including its budgetary entities.

As the Court issued two judgments on the VAT treatment of public bodies, t...