Kretztechnik AG v Finanzamt Linz: ECJ 26 May 2005

Europa Sixth VAT Directive – Supplies for consideration – Share issue – Admission of a company to a stock exchange – Deductibility of VAT).
Kretztechnik’s objects were the development and sale of electro-medical appliances. Sales of its products were subject to VAT with the result that it was entitled to deduct input tax on supplies of goods or services acquired by it for the purpose of making those sales. In order to increase its share capital, it obtained a listing on the Frankfurt stock exchange. To do so it had to purchase certain services. VAT was charged on the cost of those services. Kretztechnik wished to deduct that tax (input VAT).
Held: Though a new issue was not itself a taxable transaction, VAT which had been paid on the professional and other costs of the issue could be set off as VAT inputs under article 17.


C-465/03, [2005] EUECJ C-465/03, Times 21-Jun-2005, [2005] STC 1644, [2005] 1 WLR 3755, [2005] ECR I-4357





Cited by:

CitedChurch of England Children’s Society v Revenue and Customs ChD 29-Jul-2005
The Society sent out free newsletters to its unpaid fund-raisers and supporters. They sought to deduct input tax charged to them from the supplies associated with the costs.
Held: The Society might be able to deduct such tax as residual input . .
CitedOxfam v Revenue and Customs ChD 27-Nov-2009
The charity appealed against refusal to allow it to reclaim input VAT. It also sought judicial review of the decision of the Tribunal not to allow it to raise an argument of legitimate expectation. The charity had various subsidiaries conducting . .
CitedRevenue and Customs v Frank A Smart and Son Ltd SC 29-Jul-2019
The question was whether a taxpayer can deduct as input tax the VAT which it has incurred in purchasing entitlements to an EU farm subsidy, the Single Farm Payment. The taxpayer had used those entitlements to annual subsidies over several years and . .
Lists of cited by and citing cases may be incomplete.


Updated: 07 May 2022; Ref: scu.225314