Rompelman and Rompelman-Van Deelen v Minister Van Financien: ECJ 14 Feb 1985

The economic activities referred to in article 4(1) of the sixth directive on the harmonization of the laws of the member states relating to turnover taxes may consist in several consecutive transactions. The preparatory acts, such as the acquisition of assets and therefore the purchase of immovable property, which form part of those transactions must themselves be treated as constituting economic activity.
Accordingly, the acquisition of a right to the future transfer of property rights in part of a building yet to be constructed with a view to letting such premises in due course may be regarded as an economic activity within the meaning of article 4(1) of the sixth directive. However, that provision does not preclude the revenue authorities from requiring the declared intention to be supported by objective evidence such as proof that the premises which it is proposed to construct are specifically suited to commercial exploitation.

Citations:

R-268/83, [1985] EUECJ R-268/83, [1985] 3 CMLR 202, [1985] ECR 655, ECLI:EU:C:1985:74

Links:

Bailii

Jurisdiction:

European

Cited by:

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.

VAT

Updated: 20 April 2022; Ref: scu.215289