25.7.2008
News

ECJ VAT Case law

At the end of March the ECJ issued its decision in Case C-111/05 Aktiebolaget NN on several preliminary matters relating to application of VAT on the laying of seabed optic cables. Although the issues arising particularly concern the criteria according to which supplies of goods may be distinguished from the provision of services, and how to determine the place of supply when providing line constructions, the ECJ decision also has general application.

For a transaction to qualify as a service, the service element of such a transaction must be of "decisive" (i.e. crucial) significance. Factors relevant in this regard can be the work/ materials ratio and the fact of whether the material or goods are supplied or provided without altering its nature and without adapting it to the specific requirements of the client  (to comply with the definition of supply of goods).

To determine the place of supply, reference needs to be made to the Sixth Directive, which provides that as regards the supply of goods including assembly thereof, the place of supply is the country in which the assembly or installation takes place. Hence in the given case, the place of supply is in several Member States. No VAT is due on supplies made to countries outside the EU. The price of the service to be supplies in each country is calculated pro rata the length of the cable laid in each territory.

Other articles

20.6.2025
News

KŠB advised the seller on the sale of mcePharma to the Brenntag Group

The KŠB team, consisting of Vlastimil Pihera, Jakub Porod, and Dominika Bazalová, provided legal advice to the seller, Mr. Ivan Mikeš, in connection with the sale of 100% of the shares in mcePharma to the international Brenntag Group, a global leader in the distribution of chemicals and ingredients.
18.6.2025
News

KŠB Provided Legal Advisory in the Sale of ARETE Park Rokycany II to the REICO LONG LEASE Fund

Jiří Horník, Jakub Porod, and Yelizaveta Volodina assisted the ARETE group in the sale of the premium logistics complex ARETE Park Rokycany II. The buyer is the REICO LONG LEASE fund, managed by REICO Erste Asset Management. The fund primarily invests in logistics, industrial, retail, office, and other commercial properties, mainly in the Central European region.
17.6.2025
News

KŠB and Smetanova Litomyšl – a partnership with impact

Last weekend, as partners of the Smetanova Litomyšl festival, we had the honour of attending the opening concert of the festival’s 67th edition, featuring the Czech Philharmonic conducted by Jakub Hrůša and the exceptional Norwegian violinist Vilde Frang.