Court of Justice of the European Union

Judgment of 6 October 2015

Case no. C-66/14

In the Judgment in question, rendered in the context of a reference for a preliminary ruling, the Court of Justice of the European Union claim that the refusal to allow the depreciation of goodwill of the acquired company by the company acquiring a holding in a non-resident company, in the context of the taxation of a group of companies, infringes the right of establishment, as it creates a different treatment between two category of companies in comparable situations - a parent company acquiring a holding in a resident company, case in which the said deduction is accepted, and a parent company acquiring a holding in a non-resident company.

Court of Justice of the European Union

Judgment of 22 October 2015

Case no. C-277/14

In the Judgment in question, rendered in the context of a reference for a preliminary ruling, the Court of Justice of the European Union gave a ruling on the possibility of a taxpayer deducting the VAT paid following a sale carried out by a non-existent trader.

The Court held that the criterion that the supplier of the goods must exist or be entitled to issue invoices is not among the conditions giving rise to the right to deduct the tax. Thus, that status cannot depend on whether the supplier complies with the obligations to submit a tax return and pay VAT.

The Court has also held that that recipient has a right to deduct even if the supplier of the goods is a taxpayer who is not registered for VAT, where the invoices relating to the services supplied contain all of the information required and also where the taxpayer should not have known that that transaction was connected with VAT fraud.

Court of Justice of the European Union

Judgment of 22 October 2015

Case no. C-126/14

In the Judgment in question, rendered in the context of a reference for a preliminary ruling, the Court of Justice of the European Union gave a ruling on the right to deduct the input VAT paid for the acquisition or production of capital goods when they are made available to the public free of charge.

Given that the availability of goods or services free of charge is intended to attract visitors and to encourage them to buy the goods and services subject to VAT –i.e., enable to tax transactions to be carried out - the taxpayer must be entitled to the right to deduct VAT charged in the acquisition of these goods and services, since they fall within the scope of its economic activity.

Court of Justice of the European Union

Judgment of 22 October 2015

Case no. C-264/14

In the Judgment in question, rendered in the context of a reference for a preliminary ruling, the Court of Justice of the European Union gave a ruling on the interpretation of the concept of transactions in the VAT directive in order to ascertain whether transactions involving the exchange of traditional currency for ‘bitcoin’ virtual currency are a supply of services for consideration and, as such, are covered by the exemption from VAT provided for in Article 135.1(e) of the VAT Directive.

The Court held that the supply of services such as those at issue in this case are transactions exempt from VAT since the payment made with “bitcoin”, being accepted by operators, is considered a payment analogous to payments made with traditional currencies.