Clifford Chance

VAT Exemption also for letting of business fixtures? Takeaways from ECJ Judgement C-516/21 (Finanzamt X) dated 4 May 2023

15 May 2023

The VAT exemption for the leasing and letting of real estate shall also apply to the letting of permanently installed equipment and machinery where that letting constitutes a supply ancillary to a principal supply of leasing of real estate, carried out under a leasing agreement concluded between the same parties.

On 4 May 2023, the European Court of Justice (ECJ) decided on a request for a preliminary ruling from the German Federal Fiscal Court (Bundesfinanzhof) made on 26 May 2021 (V R 22/20).

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