Judgment of the Court (Seventh Chamber) of 13 June 2018.Szef Krajowej Administracji Skarbowej v Polfarmex Spółka Akcyjna w Kutnie.Request for a preliminary ruling from the Naczelny Sąd Administracyjny.Reference for a preliminary ruling — Taxation — Common system of value added tax (VAT) — Directive 2006/112/EC — Article 2(1)(a) — Scope — Taxable transactions — Supply of goods for consideration — Transfer by a public limited company of a building to a shareholder as the counterpart to the buy-back of its shares.Case C-421/17.

Judgment // 13/06/2018 // 2 min read
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Case C‑421/17

Szef Krajowej Administracji Skarbowej

v

Polfarmex Spółka Akcyjna w Kutnie

(Request for a preliminary ruling from the Naczelny Sąd Administracyjny)

(Reference for a preliminary ruling — Taxation — Common system of value added tax (VAT) — Directive 2006/112/EC — Article 2 (1) (a) — Scope — Taxable transactions — Supply of goods for consideration — Transfer by a public limited company of a building to a shareholder as the counterpart to the buy-back of its shares)

Summary — Judgment of the Court (Seventh Chamber), 13 June 2018

Harmonisation of fiscal legislation — Common system of value added tax — Supply of goods for consideration — Meaning — Transfer by a public limited company of a building to a shareholder as the counterpart to the buy-back of its shares — Included — Condition — Immovable asset used in the economic activity of the limited company

(Council Directive 2006/112, Art. 2(1)(a))

Article 2(1)(a) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax must be interpreted as meaning that the transfer by a limited company to one of its shareholders of the ownership of immovable property, made, as is the one at issue in the main proceedings, as consideration for the buy-back, by that limited company, under a mechanism for the redemption of shares provided for in national legislation, of shares held in its share capital by that shareholder, constitutes a supply of goods for consideration subject to value added tax provided that that immovable property is used in the economic activity of that limited company.

(see para. 46, operative part)