Barter contract EU VAT case law

3 cases of the Court of Justice and the General Court of the European Union on this point of VAT law, from 2012 to 2013.

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Provisions these cases interpret most

Article 63 of Directive 2006/112/EC Supply of goods or services · 3 of these cases
Article 65 of Directive 2006/112/EC Supply of goods or services · 3 of these cases
Article 73 of Directive 2006/112/EC Supply of goods or services · 3 of these cases
Article 80 of Directive 2006/112/EC Supply of goods or services · 3 of these cases
Article 62 of Directive 2006/112/EC Chargeable event and chargeability of vat · 2 of these cases

The 3 cases, most recent first

Under each case, what the Court decided, from its summary. The summaries are AI-generated and are not official documents: open the case for the Court’s own text.

C-153/12 Sani treyd

Order · 21 March 2013 · Bulgaria

Building rights granted in exchange for construction make the tax chargeable at once

The Court holds that tax may become chargeable when the right is granted, provided all the relevant elements of the future supply are already known, so the services are precisely identified and the value of the right can be expressed in money. It is irrelevant that granting the right is an exempt transaction made by non taxable persons. Articles 73 and 80 do preclude a national rule imposing open market value in every barter, outside transactions between connected parties. A reasoned order under Article 99 of the Rules of Procedure that follows Orfey Balgaria closely.

C-19/12 Efir

Judgment · 7 March 2013 · Bulgaria

Value added tax · Directive 2006/112/EC · Articles 62, 63, 65, 73 and 80 · Establishment by natural persons of a building right in favour of a company in exchange for construction services by that company for those persons · Barter contract · VAT on construction services · Chargeable event · When chargeable · Whether…

C-549/11 Orfey

Judgment · 19 December 2012 · Bulgaria

Payments on account in kind and the taxable amount in barter construction deals

Article 65 covers payments on account in kind, including where they represent the entire consideration, so VAT on the construction services became chargeable when the building right was granted, provided all relevant information about the future supply was already known, the services were precisely identified, and the right's value could be expressed in money. A possible future extinction of the right is only a cancellation condition. Absent Article 80 ties between the parties, open market value cannot replace the subjective consideration. Articles 63, 65 and 73 have direct effect. Relevant to property developers and their advisers using land-for-build or building-right barter structures.