CJEU - Recent Developments in Value Added Tax 2024

S. 1341. Introduction

This chapter will deal with four cases that were decided by the CJEU in 2024 regarding taxable persons and related issues. First, Finanzamt T II will be analyzed which deals with the question of whether intra-group supplies within a VAT group are out-of-scope of VAT. Second, Latvijas Informācijas will be discussed which revolves around the question of whether the status of taxable persons is conferred when entities provide supplies at a deficit. The subsequent two cases deal with miscellaneous VAT issues. Dyrektor Izby Administracji Skarbowej w Lublinie addresses VAT consequences for an employer if an employee is acting fraudulently. UP CAFFE focuses on the consequences of using a VAT exemption abusively by (subsequently and continuously) forming a new company.

2. Finanzamt T II - VAT treatment of intra-group supplies

2.1. Facts of the case and preliminary question

S is a German foundation governed by public law. Its activities are either out-of-scope (as a public entity as a university) or inside the scope of VAT but exempt (as a regular taxpayer providing hospital care). Furthermore, S forms a VAT group with U GmbH for which it acts as the VAT group head, and U GmbH i...