Ascertaining the VAT payable in the absence of purchase price
In Property Development Company NV v Belgische Staat (C-16/14) (23 April 2015) the CJEU found that when establishing a liability to VAT by reference to the purchase price of similar goods the tax authorities were not required to exclude certain cost components.
Prodeco had constructed a building with the intention of selling it. It therefore appeared as stock in its account and its valuation included interim interest paid under a loan agreement entered into for the purpose of constructing the building. The issue was whether the taxable amount should include the interim interest. Under the Sixth Directive art 11A(1)(b) the taxable amount was the purchase price of the goods (or of similar goods) or in the absence of purchase price the cost price.
The CJEU found that the referring court had been right to hold...
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Ascertaining the VAT payable in the absence of purchase price
In Property Development Company NV v Belgische Staat (C-16/14) (23 April 2015) the CJEU found that when establishing a liability to VAT by reference to the purchase price of similar goods the tax authorities were not required to exclude certain cost components.
Prodeco had constructed a building with the intention of selling it. It therefore appeared as stock in its account and its valuation included interim interest paid under a loan agreement entered into for the purpose of constructing the building. The issue was whether the taxable amount should include the interim interest. Under the Sixth Directive art 11A(1)(b) the taxable amount was the purchase price of the goods (or of similar goods) or in the absence of purchase price the cost price.
The CJEU found that the referring court had been right to hold...
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