Bryn Reynolds and Gary Barnett (Simmons & Simmons) examine the latest developments affecting VAT, including two CJEU decisions and a significant change to the Retained EU Law Bill.
Letting and leasing of fixed plant and machinery
In Finanzamt X v Y (Case C-516/21) (aka ‘the German Turkey Barn case’) the CJEU confirmed the advocate general’s opinion that the provisions of article 135(2)(c) of the Principal VAT Directive which exclude from the exemption for the leasing and letting of immovable property the ‘the hiring of tools and machinery permanently fixed’ do not override the application of the single supply rule.
Y leased barns with permanently fixed tools and machinery specially adapted to the use of the barn for rearing turkeys. Under the provisions of the lease Y received a single remuneration which was not divided between the provision of the building and the tools and machinery....
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Bryn Reynolds and Gary Barnett (Simmons & Simmons) examine the latest developments affecting VAT, including two CJEU decisions and a significant change to the Retained EU Law Bill.
Letting and leasing of fixed plant and machinery
In Finanzamt X v Y (Case C-516/21) (aka ‘the German Turkey Barn case’) the CJEU confirmed the advocate general’s opinion that the provisions of article 135(2)(c) of the Principal VAT Directive which exclude from the exemption for the leasing and letting of immovable property the ‘the hiring of tools and machinery permanently fixed’ do not override the application of the single supply rule.
Y leased barns with permanently fixed tools and machinery specially adapted to the use of the barn for rearing turkeys. Under the provisions of the lease Y received a single remuneration which was not divided between the provision of the building and the tools and machinery....
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
