Case C‑17/18
Criminal proceedings
against
Virgil Mailat and Others
(Request for a preliminary ruling from the Tribunalul Mureş)
(Reference for a preliminary ruling — Taxation — Value added tax (VAT) — Directive 2006/112/EC — Articles 19 and 29 and Article 135 (1) (l) — Transfer of a totality of assets or part thereof — Exemption for lettings of immovable property — Rental contract concerning an immovable property used for commercial purposes and the movable property necessary for that use — Supply of services relating to that immovable property which gave rise to the deduction of VAT — Adjustment)
Summary — Judgment of the Court (Tenth Chamber), 19 December 2018
Harmonisation of fiscal legislation — Common system of value added tax — Taxable transactions — Supply of goods — Transfer of a totality of assets or part thereof — Concept — Letting of an immovable property used for commercial purposes and the movable property necessary for that use — Not included
(Council Directive 2006/112, Art. 19)
Harmonisation of fiscal legislation — Common system of value added tax — Exemptions — Exemptions for other activities — Leasing and letting of immovable property — Concept — Rental contract concerning an immovable property used for commercial purposes and the movable property necessary for that use — Included — Condition — Bundle constituting a single supply
(Council Directive 2006/112, Art. 135(1)(l))
The concept of ‘transfer of a totality of assets or part thereof’, within the meaning of Article 19 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, must be interpreted as not covering the transaction by which an immovable property which was used for commercial purposes is let with all capital equipment and inventory items necessary for that use, even if the lessee pursues the activity of the lessor under the same name.
(see para. 30, operative part 1)
Article 135(1)(l) of Directive 2006/112 must be interpreted as meaning that a lease contract for an immovable property which was used for commercial purposes and for all capital equipment and inventory items necessary for that use constitutes a single supply in which the letting of the immovable property is the principal supply.
(see para. 41, operative part 2)