In Kronospan Mielec sp zoo v Dyrektor Izby Skarbowej w Rzeszowie (ECJ Case C-222/09) a Polish company (K) provided services to a Cyprus company consisting of ‘research and development work relating to the environment and technology carried out by engineers’. The Polish tax authority issued a ruling that some of K’s supplies were ‘scientific activities’ so that the place of supply for VAT purposes was Poland. K appealed contending that its supplies were ‘services of engineers’ within Article 9(2)(e) of the EC Sixth Directive so that the place of supply was in Cyprus. The case was referred to the ECJ which upheld K’s contentions holding that where such services were supplied ‘on a contract basis for the benefit of a recipient established in another Member State’ they were ‘services of engineers’ falling within Article 9(2)(e).
Why it matters: The ECJ confirmed that...
