CJEU - Recent Developments in Value Added Tax 2017

1. S. 207Introduction

This contribution addresses case law of the Court of Justice of the European Union (hereinafter CJEU) which relates to the taxability of supplies of goods and services. In that context, I discuss some judgments on the direct link between supplies and their consideration (see section 1.1.), as well as judgments on the place of supply of goods and services (section 1.2.). Additionally, I address various CJEU judgments which relate to whether supplies that take place within the context of an artificial structure have to be disregarded for VAT purposes and, if so, on what grounds (section 1.3.).

1.1. Direct link between supply and consideration

Not all transactions carried out by a taxable person are subject to VAT. A supply is only taxable if it is effected for consideration. Art. 2(1) (a) of the VAT Directive and Art. 2(1)(c) of the VAT Directive provide that the supply of goods and services, respectively, for consideration within the territory of a Member State by a taxable person acting as such is subject to VAT. According to the Court’s settled case law, the possibility of classifying a supply of services as a transaction “for consideration” requires only that there b...