Judgment — ECLI:EU:C:2016:466
Date: 2016-06-22
Language of the case: Dutch
Court formation: Tenth Chamber
Subject matter: Taxation;Value added tax
Procedure: Reference for a preliminary ruling
Origin: Netherlands

Summary — Judgment of the Court (Tenth Chamber), 22 June 2016 Harmonisation of fiscal legislation — Common system of value added tax — Deduction of input tax — Origin and scope of the right of deduction — Taxable person having had a building constructed and having sold that building for a price less than the cost of constructing it — Entitlement to deduct all of the value added tax — Purchaser having granted the use of part of the building to a third party free of charge — No effect (Council Directive 2006/112) Directive 2006/112 on the common system of value added tax must be interpreted as meaning that, where a taxable person has had a building constructed and has sold that building for a price less than the cost of constructing it, that taxable person is entitled to deduct all of the value added tax paid in respect of the construction of that building, and not only a part of that tax in proportion to the parts of the building which its purchaser uses for economic activities. The fact that that purchaser allows the building at issue to be used without charge is of no importance in that regard. (see para. 42, operative part)