CJEU – Recent Developments in Value Added Tax 2020
1. Aufl. 2022
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S. 941. Case law on taxable persons
1.1. General remarks
In 2020, the CJEU was asked to give guidance on three different cases regarding the qualification of taxable persons. The first case to be discussed, the UR case, deals with the question of whether lawyers are taxable persons. The second case, the XT case, deals with the question of who carries out the activity as a taxable person in the case of a partnership. Lastly, the Court had to decide on a case of a mixed holding company and whether such a company is a taxable person.
1.2. Case C-424/19, UR
1.2.1. Facts
UR is a Romanian law firm that wanted to be removed from the Romanian register of taxable persons for VAT. UR argued – on the basis of a Romanian court judgment – that its activity is not an economic activity, as its contracts are contracts for legal assistance and not contracts for the provision of services.
1.2.2. Decision
Unsurprisingly, the Court came to the conclusion that the activities of lawyers are economic activities and, thus, a lawyer constitutes a taxable person. The Court referred to its steady case law that the notion of taxable persons needs to be interpreted broadly. Furthermore, Art. 9(1)(2) of the VAT Directive l...