ECJ - Recent Developments in Value Added Tax

S. 111I. Introduction

It is not only important to know whether a certain transaction is subject to VAT but it is also relevant to establish the nature of that supply. Is it a supply of a good or a provision of a service? The nature of the supply determines not only the place of the supply, but also the applicable rate, and, for instance, which set of rules need to be used to establish and calculate the right of deduction of the related input VAT. Sometimes the question comes up whether the transaction in question must be seen as one single supply for VAT purposes or whether it comprises a group of individual, distinct supplies. The Court of Justice of the European Union (CJEU) has produced so much case law regarding these issues that it would be impossible to discuss them all within the framework of this article. Hereinafter the following five judgments are used as a starting point to illustrate some broader topics.

• Serebryannay vek EOOD, C-283/12, Consideration in kind, paragraph 2.1;

• BV X, C-651/11, Transfer of a going concern, paragraph 3.1;

• FCE Bank, C-210/04, Transactions between a head-office and the fixed establishment, paragraph 3.2;

• Field Fisher Waterhouse, C-392/11, One single trans...