Martin Shah and Gary Barnett (Simmons & Simmons) provide your monthly review of the VAT developments that matter.
VAT and sale and leaseback (again)
In marked contrast to the recent decision of the Court of Session in Balhousie [2019] CSIH 7 the CJEU has indicated in Mydibel SA v Belgium (Case C-201/18) that a sale and leaseback transaction may be regarded as a single transaction for the purposes of determining whether a person has disposed of property in the context of the operation of the capital goods scheme.
The case involved a Belgian business Mydibel which had recovered input VAT in relation to buildings used for the purposes of its economic activity. In 2009 in order to increase its liquidity Mydibel entered into VAT exempt sale and leaseback transactions over its buildings. The sale and leaseback arrangements...
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Martin Shah and Gary Barnett (Simmons & Simmons) provide your monthly review of the VAT developments that matter.
VAT and sale and leaseback (again)
In marked contrast to the recent decision of the Court of Session in Balhousie [2019] CSIH 7 the CJEU has indicated in Mydibel SA v Belgium (Case C-201/18) that a sale and leaseback transaction may be regarded as a single transaction for the purposes of determining whether a person has disposed of property in the context of the operation of the capital goods scheme.
The case involved a Belgian business Mydibel which had recovered input VAT in relation to buildings used for the purposes of its economic activity. In 2009 in order to increase its liquidity Mydibel entered into VAT exempt sale and leaseback transactions over its buildings. The sale and leaseback arrangements...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
