# C_2021138EN.01000402.xml

| 19.4.2021 | EN | Official Journal of the European Union | C 138/4 |
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19.4.2021

EN

Official Journal of the European Union

C 138/4

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Judgment of the Court (First Chamber) of 25 February 2021 (request for a preliminary ruling from the Wojewódzki Sąd Administracyjny we Wrocławiu — Poland) — Gmina Wrocław v Dyrektor Krajowej Informacji Skarbowej

(Case C-604/19) (1)

(Reference for a preliminary ruling - Taxation - Value added tax (VAT) - Directive 2006/112/EC - Article 2(1)(a) - Article 9(1) - Article 13(1) - Article 14(1) and (2)(a) - Concept of ‘supply of goods’ - Transformation of the right of perpetual usufruct into full immovable property ownership rights by operation of law - Municipality collecting fees for the transformation - Concept of ‘compensation’ - Concept of ‘taxable person acting as such’ - Exception - Bodies governed by public law which engage in activities or transactions as public authorities)

(2021/C 138/05)

Language of the case: Polish

Referring court

Wojewódzki Sąd Administracyjny we Wrocławiu

Parties to the main proceedings

Applicant: Gmina Wrocław

Defendant: Dyrektor Krajowej Informacji Skarbowej

Operative part of the judgment

| 1. | Article 14(2)(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 transformation of the right of perpetual usufruct into full immovable property ownership rights provided for by national legislation against payment of a fee constitutes a supply of goods within the meaning of that provision. |
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1.

Article 14(2)(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 transformation of the right of perpetual usufruct into full immovable property ownership rights provided for by national legislation against payment of a fee constitutes a supply of goods within the meaning of that provision.

| 2. | Directive 2006/112 must be interpreted as meaning that, where the transformation of the right of perpetual usufruct into full immovable property ownership rights provided for by national legislation takes place against payment of a fee to the municipality which owns the property, enabling it to obtain income therefrom on a continuing basis, that municipality, subject to the verifications to be made by the referring court, acts as a taxable person within the meaning of Article 9(1) of that directive, and not as a public authority for the purposes of Article 13(1) of that directive. |
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2.

Directive 2006/112 must be interpreted as meaning that, where the transformation of the right of perpetual usufruct into full immovable property ownership rights provided for by national legislation takes place against payment of a fee to the municipality which owns the property, enabling it to obtain income therefrom on a continuing basis, that municipality, subject to the verifications to be made by the referring court, acts as a taxable person within the meaning of Article 9(1) of that directive, and not as a public authority for the purposes of Article 13(1) of that directive.

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(1)  OJ C 383, 11.11.2019.

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