The EU Council today formally adopted new value added tax (VAT) rules for distance sales of imported goods. The new rules take the form of a directive which amends directive 2006/112/EC, known as the VAT directive.
Following a request for a preliminary ruling from the Supreme Tax Court the European Court of Justice decided that the transfer free of charge of heat produced by a taxable person to other taxable persons is treated as a VATable supply of goods for consideration. It is irrelevant in that regard whether the recipients use the heat for purposes entitling to an input VAT deduction.
On 4 October 2017 the European Court of Justice decided that a finance lease with an option to purchase should be qualified as a “supply of goods” where the exercise the option appears to be the only economically rational choice that the lessee could make at the appropriate time. As a result the whole of the VAT becomes due when the object to be leased is handed over.
