Case Law

The transfer for consideration of a portfolio of life reinsurance contracts must be regarded as a supply of services, but not (VAT-exempt) insurance services. Swiss Re Germany Holding GmbH v Finanzamt München für Körperschaften Case C-242/08

Hotel Scandic Gasaback AB v Riksskatteverket Case C-412/03 concerned the provision of a lunch to employees at a fixed price in a canteen specially set up by the company. The ECJ held that where there was an amount paid by the employee it was irrelevant whether this ‘consideration’ was less than the cost price of the goods or services supplied. It was this amount paid by the employee that was subject to VAT. In this case, the ECJ also observed that once there was consideration paid, the goods or services could not be regarded as applied for a private use i.e. self-supply.

A person who does not initially have any interest in immovable property and who enters into an agreement for a lease in return for a payment by the landlord does not make a supply of services. Commissioners of Customs & Excise v Mirror Group plc Case C-409/98

ECJ held that where the duration of the “right of enjoyment of the immovable property” has not been agreed by the parties to a contract, such contract cannot be regarded as a “letting”. Therefore, the provision of access to roads on payment of a toll could not be considered an exempt “letting “ of immovable goods. Commission of the European Communities v Ireland Case C-358/97

ECJ held that an undertaking to discontinue milk production given by a farmer under Regulation 1336/86 does not constitute a supply of services. Consequently, any compensation received for that purpose is not subject to VAT. Jurgen Mohr v Finanzamt Bad Segeberg Case C-215/94

Playing music on the public highway for which no remuneration is specified, even if the musician asks and receives money was held not to be a ‘supply of services effected for consideration’. The key point being that people donating money to the busker had no obligation so to do. R.J. Tolsma v Inspecteur der Omzetbelasting Leeuwarden Case C-16/93

High Court held that the Appeal Commissioners was correct in holding that the exploitation of copyrights was a supply of services. Phonographic Performance (Ireland) Ltd v Somers (Inspector of Taxes) 1991 IV ITR 314