CJEU – Recent Developments in Value Added Tax 2020

S. 1441. Introduction

Whilst the concept of single supply has been with us since the 1990s, with the decisions in Faaborg-Gelting Linien and Card Protection Plan, in recent – and maybe also the coming – years, we have seen some real development in the nuances attached to this concept.

As noted by Herman Van Kesteren and Huub Van Erp in their paper, the CJEU recognizes two categories of single supply: a single complex supply or dependent ancillary supply. These are well established, and both result from previous case law of the Court. A dependent ancillary supply is first addressed in Card Protection Plan, as occurring “where one or more elements are to be regarded as constituting the principal service, whilst one or more elements are to be regarded, by contrast, as ancillary services which share the tax treatment of the principal service.” A single complex supply is addressed in Levob Verzekeringen, as occurring “where two or more elements or acts supplied by the taxable person to the customer, being a typical consumer, are so closely linked that they form, objectively, a single, indivisible economic supply, which it would be artificial to split”.

We are now, however, seeing some form of fi...