CJEU – Recent Developments in Value Added Tax 2016

S. 177Recent CJEU Case Law on Public Bodies – A Comment

Caroline Heber

1. S. 178Why are We where We are

Over the last few decades, the CJEU has ruled in a number of cases that the consideration for a supply of goods or services is of a subjective nature and thus is not a value estimated according to objective criteria. A consideration that is of a subjective nature does not have to reflect the real value of the goods or services supplied. According to this case law, the qualification as consideration for a supply of goods or services only requires that there is a direct link between the consideration and the supply of goods or services. The mere fact that the consideration is under the market value or even under the cost price of the goods or services supplied is not sufficient to deny the existence of a direct link.

The CJEU has repeatedly ruled that the EU VAT Directive provides a minimum assessment base under Art. 80. If Member States fear that the application of standard rules leads to VAT avoidance or evasion, they are entitled to deviate from the standard regime; however, the boundaries are set by Art. 80 of the EU VAT Directive. If a Member State wants to go further than this provision allo...