The decision in XT v Valstybinė mokesčių inspekcija prie Lietuvos Respublikos finansų ministerijos and Vilniaus apskrities valstybinė mokesčių inspekcija prie Lietuvos Respublikos finansų ministerijos (Contrat d’activité commune) C-312/19 was delivered by the CJEU on 16 September 2020. The court had to determine who the taxable person was in the context of a partnership and therefore who would be liable for accounting for VAT on supplies made. In this case, two natural persons planned and implemented a construction project for several buildings; however, only one of them – XT – actively carried on the business, whereas his business partner, who funded 70% of the acquisition costs, was involved only in project decisions and received a corresponding share from XT on completion of the joint project and the sale of the new buildings. Proceedings arose between XT and the Lithuanian Tax Inspectorate concerning an order issued to XT by the Vilnius tax authority requiring payment of VAT and interest. The VAT provisions under review were Articles 9 and 28 of the EU VAT Directive, which set out the meaning of taxable person and the provisions on undisclosed intermediaries, respectively.
To continue reading...
Members, students and subscribers of the Irish Tax Institute can login using your username and password.
For information on subscribing please contact firstname.lastname@example.org